Siteserv sold to entrepreneur in £40m deal

Grant Prior 12 years ago
Share

Siteserv is being sold in a deal which will see its infrastructure business including scaffolding arm Deborah Services get new owners.

The companies being sold are Deborah, Sierra Communications (which now incorporates Holgate’s business), Easy Access, Donohoe Scaffolding, Rent-a-Fence, Roankabin Holdings and Eventserv.

The operations are being bought by an acquisition vehicle called Millington set-up by entrepreneur Denis O’Brien for the deal.

The companies had a turnover of £140m for the year to April 30 2011 and made an operating profit of £7m.

More than 2,300 people are employed by Siteserv across the UK and Ireland.

O’Brien said: “I believe that Siteserv – with a workforce of over 2,300 – has the potential to grow and develop geographically in many countries.

“Siteserv has an excellent track record of winning new business and growing revenues in a competitive market.

“Our investment demonstrates our commitment to growing the business into the future, supporting its existing customer base, employees and expanding further in its core markets.

“We believe the team has a great opportunity to capture growth opportunities in the future”.

The completed deal will see Sitserv wound down as a publicly quoted company and any proceeds left after its debts are paid will go to shareholders.

Siteserv said only £4m would be left from the sale for shareholders after its debts were settled.

The company confirmed to the Stock Exchange today that its current debt levels were “unsustainable”.

Siteserv said: “Following completion, the Group will not have any revenue generating operating businesses.

“The Board has determined that it is in the best interests of Shareholders as a whole to return the net proceeds of the Proposed Disposal to Shareholders as efficiently and expediently as possible and to wind up the Company to facilitate the distributions to the Shareholders in a tax efficient manner.”

The Siteserv name will retained but Siteserv plc will no longer exist.

Brian Harvey, Chief Executive, Siteserv said: “We are delighted with the partnership we have built with our new partner and we believe that this will enable us to consolidate and strengthen the ambitions of Siteserv in Ireland, the United Kingdom and Internationally, both through organic growth and acquisitions.

“In addition I believe teaming up with a new partner will provide security and strength to our balance sheet and in turn provide confidence to customers and employees alike. We believe the team has a great opportunity to capture growth opportunities in the future”.

Latest news

Construction buyers see fastest growth for 14 months

Commercial building work leads the way in April
7 hours ago

Go Modular Technologies files administration notice

Southampton bespoke volumetric specialist employs around 60 staff
10 hours ago

Cladding firm went down owing supply chain £7.7m

Debts revealed at Everton stadium cladding contractor Alucraft Systems Ltd
11 hours ago

Rydon dogged by legacy fire safety remediation costs

£19m spent on fire safety remediation work to date
11 hours ago

Carpenter killed by falling timber frame panels

Court fines specialist contractor £8,000 after site tragedy
4 days ago

Trio of builders win King’s Award for sustainability

Henry Brothers, Willmott Dixon and ZED Pods recognised for sustainability
10 hours ago

Kent police seize huge haul of stolen site tools

Hunt for power drill fitted with tracker busts tool theft ring
10 hours ago

Robertson names new Northern construction chiefs

Ian Phillips promoted and Ricky Brown joins from Morgan Sindall
11 hours ago

Road sweeper specialist files administration notice

Go Plant lodges court notice
4 days ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
4 days ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
4 days ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
4 days ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
5 days ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
5 days ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
5 days ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
5 days ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
6 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
5 days ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
6 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
5 days ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
5 days ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
6 days ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
6 days ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
1 week ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
6 days ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
6 days ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
6 days ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
1 week ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
1 week ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
1 week ago

Contractor services