Bovis Homes agrees £1.1bn deal for Galliford Try housing arm

Aaron Morby 2 years ago
Share

Bovis Homes has agreed to buy Galliford Try’s housing operations in a share and cash deal that values the business at £1.1bn.

Greg Fitzgerald on track to pull off game-changing deal for Bovis Homes
Greg Fitzgerald on track to pull off game-changing deal for Bovis Homes

The deal will give Galliford Try shareholders a 29.3% stake in the enlarged Bovis Homes worth £675m.

It also includes a £300m cash payment to Galliford Try and the transfer of Galliford Try’s 10-year private debt placement of £100m.

The deal, which catapults Bovis Homes up the ranking to become a top five house builder, will go before shareholders on 2 December with completion expected on 3 January.

Bovis also revealed it aimed to raise £157m through a share placing to help finance the acquisition.

Galliford Try said the proceeds would help it to create a cash-backed independent contractor.

The remaining business would employ around 3,400 staff generating revenue of around £1.4bn and enjoy an average daily net cash balance of around £150m.

Greg Fitzgerald, CEO of Bovis Homes said: “This is an exciting and transformational opportunity to create a leading UK house builder with an enhanced customer proposition and the ability to increase delivery to more than 12,000 new homes per year.

“The combination with Galliford Try Partnerships gives Bovis Homes a market leading position in the high growth, more resilient partnerships market, with significant potential to increase revenue and profit while delivering more affordable homes at a time when they are needed more than ever.”

Fitzgerald, who was formerly at Galliford Try for 11 years as CEO then chairman added: “I am very focused on successfully integrating these businesses in early 2020 with strong management across all business areas, and on delivering the clear benefits from the combination including at least £35 million of synergies as quickly as possible.”

Peter Ventress, Chairman of Galliford Try, said: “This transaction is a positive development which is in the best interests of both our shareholders and wider stakeholder group.

“For Galliford Try, it establishes a focused and well-capitalised construction business led by a very experienced and dedicated management team.

“Supported by a robust order book and strong market positions in key sectors, Galliford Try will be well-positioned for the future.

“This transaction also creates one of the UK’s leading housebuilding and partnerships businesses with great opportunity ahead, from which Galliford Try shareholders will benefit through their continued shareholding.”    

    

Latest news

Hollywood studio plans £700m Hertfordshire base

Another major film studio to be built in Hertfordshire
6 hours ago

17 firms win £560m social house building deal

North west social housing consortium JV North plans to build 4,000 homes
7 hours ago

Cleveland Bridge administrators to resume production

Staff will be contacted this week to finish contracts as buyer sought
1 day ago

Henry Boot launches new tech JV after £1bn Golden Valley win

Contractor's property arm teams up with developer Factory to target tech schemes
10 hours ago

Brickabilty snaps up southern roofing contractor

Hampshire-based Leadcraft bought for £5.5m
10 hours ago

Contractors warned over surge in contaminated plastic waste

Fresh crackdown after thousands of tonnes of construction plastic wrap waste blocked from illegal export
10 hours ago

Plans in for £180m Milton Keynes tower scheme

Work could start before end of year on £180m mixed-use scheme
11 hours ago

Campaigners win court fight to block £1.7bn Stonehenge tunnel

High Court judge quashes development consent granted by Transport Secretary Grant Shapps
3 days ago

Bidding starts for Midlands £28m Camp Hill Line stations

Bidding starts for three new stations after Covid-19 delay
12 hours ago

£350m Manchester twin skyscraper plan approved

Twin 56-storey residential towers to join Great Jackson Street cluster
4 days ago

Ballymore strikes deal for 2,800-home West London site

Partnership deal with Sainsbury's for 18-acre canalside site at Ladbroke Grove
3 days ago

Utilities firm Fulcrum plunges to £11.5m loss

Firm hit by second wave lockdowns delaying contract awards and mobilisations
3 days ago

Green light for £100m UK Holocaust Memorial building

Work to start later this year on large memorial building next to Parliament
3 days ago

Government pledges another £81m for cycle lanes

Highway Code to be revamped to prioritise cyclists
3 days ago

Long Scottish Covid lockdown cost Robertson £11.5m

Private building group plunged into £6.1m trading loss by 3 month lockdown
4 days ago

Funding deal green lights £40m modular student scheme

Financier Maslow Capital backs Audley Modular Student Living’s latest scheme in Edinburgh
3 days ago

North East contractor stops work on sites

Kapex Construction staff confirm they are no longer working for the company
4 days ago

Construction Manager of the Year finalists revealed

Full list of 77 of the industry's brightest talents
4 days ago

Record £860m pumped into 1,000 flood schemes this year

New six-year flood and coastal erosion investment plan commits to record £5.2bn spend
4 days ago

Forterra to spend £27m on high-end brick factory

Brick and block producer closes Bison precast site in face of margin pressure on 'grey concrete' products
4 days ago

Scottish retention reform plan put to Government

Government working group recommends ringfenced accounts and automatic retention release
4 days ago

Scaffolder hits overhead power line with pole

Contractor fined £333,333 after accident at commercial glasshouse site
4 days ago

Contractor hunt starts for Thames flood scheme

Contracts worth £275m up for grabs
5 days ago

CBRE pays £960m for 60% stake in Turner & Townsend

Deal values consultant at £1.6bn
6 days ago

Tetra Tech buys M&E consultant Hoare Lea

More than 900 staff to switch over to fast-growing US consulting group
5 days ago

Tideway breakthrough links all three tunnel sections

Key 75m connector tunnel breakthrough joins all tunnels for first time
5 days ago

Demolition and groundworks £1.6bn framework launched

Pagabo to hold webinar next month for interested companies: Register now
6 days ago

Go-ahead for £18m revamp of Army & Navy warehouse

Architect SPPARC redesigns historic Westminster site
5 days ago

Student rooms developer to strip HPL cladding from 22 buildings

Unite says cladding retrofit to cost £96m over next three years
6 days ago

House builders start to flesh out net-zero plan

Industry commits to first zero-carbon ready homes by 2025
6 days ago

Contractor services