Galliford Try’s Linden Homes and Partnerships and Regeneration businesses will be bought by Bovis Homes for £1.075 billion.
Bovis has explained that the deal will create a top-five rated national housebuilder, which is capable of delivering over 12,000 new homes each year over the medium term. Bovis would then be in a prime status in the high growth partnerships market and also, this partnership will provide “highly complementary geographic footprints strengthening core areas for Bovis Homes and providing the opportunity to expand into attractive regions”
The CEO of Bovis, Greg Fitzgerald, said: “This is an exciting and transformational opportunity to create a leading UK housebuilder 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.
“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.
“Over the past few years we have worked hard to ensure the customer is central to everything we do. As a combined business, this commitment to delivering high levels of build quality and customer satisfaction will remain a core objective.”
With this deal, Galliford Try shareholders should see a stake of 29.3% in the group by completion which is expected to land on 3 January 2020. And, a further £300 million cash payment will go to Galliford Try as Bovis aims to raise £157 million through a share placing in order to aid acquisition financing.