Construction group Morgan Sindall has bought most of the assets and contracts of the social housing division of
In a stock exchange announcement today, the company said its affordable housing division, Lovell Partnerships, had made the acquisition, allowing essential maintenance work to continue without interruption.
Morgan Sindall said: “The acquisition is consistent with Morgan Sindall’s long-term strategy to achieve leading positions in its chosen markets.
“The acquisition will significantly enhance Lovell’s market leading position in the affordable housing sector and creates a national, full-service business delivering planned and reactive maintenance as well as new-build social and open market affordable housing.
“The new contracts are expected to generate approximately £200m of additional annual revenue, split broadly between response maintenance contracts and Decent Homes, planned maintenance contracts.”
It had run into trouble after being hit by government cuts.
Today’s deal will secure the future of about 2,500 workers.
KPMG is also the administrator to Connaught Partnerships, the social housing division, and Connaught Technical Solutions, but the company’s compliance and environmental businesses are not in administration.
John Morgan, executive chairman of Morgan Sindall Group, said: “This is a step change for Lovell. The acquisition significantly increases the scope and scale of our planned and reactive maintenance activities and further develops our market leading position.
“Our focus now will be to ensure a smooth handover of the contracts and to minimise disruption to essential maintenance services.
“Through the experience built up at Lovell over many years, we are happy with the terms on which we are acquiring these contracts. The Board believes that this acquisition represents excellent value for our shareholders.”
nathan.cross@estatesgazette.com
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