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

Aaron Morby 3 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

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
1 day ago

West Yorkshire transport projects delayed to save £270m

Over 30 transport schemes to be placed on hold due to cost inflation budget pressure
9 hours ago

Decision on A1 Costain dualling job delayed for third time

Development consent decision for £260m Northumberland scheme put back a further 9 months
10 hours ago

Colas wins £140m Cheshire highways upkeep deal

Incumbent contractor Ringway will handover to Colas in April
10 hours ago

Skanska to lend staff cash

Contractor links-up with finance firm to offer affordable loans to employees
10 hours ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
1 day ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
1 day ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
1 day ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
1 day ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
1 day ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
1 day ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
1 day ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
2 days ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
1 day ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
2 days ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
1 day ago

Housing association shuts in-house modular factories

Swan closes loss-making steel frame and cross-laminate timber factories
2 days ago

350-homes approved around iconic London Tube station

Housing blocks to be built around Grade II-listed Hounslow West Tube station
2 days ago

Domis set for £195m Boddingtons Brewery scheme

Developer Salboy buys Manchester site to kickstart long-awaited 556 homes project
2 days ago

John Lewis £500m funding deal to build 1,000 rental homes

Deal to advance BTR flats at store sites in Bromley, West Ealing and Reading
3 days ago

Esh launches new housing retrofit division

Esh Retrofit Solutions will target market to improve the energy performance of social rented homes
2 days ago

Eric Wright wins tricky £52m Liverpool transformation

Contractor working with engineers at Ridge and Partners on "challenging" Stanley Lock Flight site
5 days ago

Investment giant buys Bristol M&E contractor

RDCP Infrastructure acquires Avon Combined Electrical Services
5 days ago

Demolition start for £50m Farnworth town centre rebuild

Caddick Construction is tipped for main works due to start in the spring
5 days ago

L&G Modular strikes deal to build 1,000 affordable homes

Modular homes business teams up with Hampshire's Vivid housing association
5 days ago

Former Erith operations director joins John F Hunt

Scott Exell named new operations director at demolition specialist John F Hunt
6 days ago

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
6 days ago

Mace hits 1m tonnes carbon saving target for clients

Present work pipeline betters 2026 carbon emission saving target
6 days ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
6 days ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
6 days ago

Contractor services