Bovis Homes has acquired the housing business of Uxbridge-based Galliford Try in a major deal for the housebuilding sector.
Bovis Homes Group plans to combine Bovis Homes and Galliford Try’s Linden Homes and Partnerships & Regeneration divisions. The latter has an agreed partnership with Ealing Council to create a new mixed-use scheme, including 470 homes.
Bovis also says it intends to change its name to the Vistry Group.
The transaction values the Galliford Try housing businesses at £1.075 billion, which will be paid part in cash and part in shares of the new group. Galliford Try will continue trading as a business wholly focussed on markets where it has a track record of success which it believes have significant growth potential, underpinned by major long-term, planned critical public sector, infrastructure and regulatory spend, such as that outlined in the 2016 National Infrastructure Delivery Plan which sets out a five-year £100 billion investment programme.
Galliford Try say the proposed transaction will allow Galliford Try to realise an appropriate premium for the housing businesses on behalf of their shareholders, while turning Galliford Try into a well-capitalised, standalone construction-focused group.
Peter Ventress, Chairman of Galliford Try plc, commented: “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.”
Galliford Try CEO Graham Prothero has joined Bovis’s board as chief operating officer. He has been succeeded at Galliford by Bill Hocking, who was chief executive of Galliford’s Construction & Investments division.