Integration of Wilson Bowden

Barratt Developments PLC 30 April 2007 Under embargo for 9.00am 30 April 2007 Barratt Developments PLC Integration of Wilson Bowden Following the completion of the acquisition of Wilson Bowden on 26 April 2007, Barratt Developments PLC ('Barratt') today announces its initial integration plans for the combined business, including the brand architecture and the organisational structure. The integration plan is designed to ensure that the combined Group delivers the anticipated synergies and the strategic benefits of the acquisition as quickly as possible ensuring that the Group is well positioned to drive organic growth. Barratt has already stated that it aims to deliver annualised pre-tax cost synergies from operational and purchasing efficiencies of at least £45 million in the second full year after completion of the deal. One-off exceptional costs of £35 million are expected to be incurred in realising these synergies*. Barratt also confirms that both businesses continue to trade in line with expectations. Key features of the integration plan are as follows: •The enlarged Group intends to focus on two strong national brands for its house building activities across Great Britain, Barratt Homes and David Wilson Homes. The strong local brand, Ward Homes, will be retained in Kent. •The KingsOak brand is being dropped from the business and its activities will be integrated with those of the Barratt and David Wilson branded operations as appropriate. •A reorganisation of the regional network of divisional offices will also commence immediately to create optimally sized house building divisions. This will involve some closures and merging of existing offices and it is therefore planned to consult on the closure of 9 divisional offices. There will be no impact on the number of sites or site based staff. •Following these changes to the divisional structure of the housebuilding business, it is envisaged that the Group will operate 35 housebuilding divisions, comprising 22 Barratt, 10 David Wilson, 2 dual branded divisions and 1 Ward Homes. •All the Group's housebuilding divisions will operate within a unified management structure reporting to six Regional Managing Directors who will in turn report to the Executive Directors North and South. •Wilson Bowden Developments, the commercial development business, will report directly to Mark Clare, Chief Executive, and be run as a separate unit but with a specific brief to work with the housebuilding divisions to deliver extra value. It will continue to be led by Nick Richardson who will join the Barratt Executive Committee. •We propose to consult with corporate centre staff at both head office locations as we rationalise these functions with the likely closure of both offices. In addition, we will be consulting on significantly reducing the operational support activities based in Ibstock through sale or closure of various elements. It is envisaged that an office will be maintained in Leicestershire and any remaining central functions in Newcastle will be relocated around our divisional operations. •Implementation of these initial integration measures is expected to affect at least 400 jobs. Where possible, redundancies will be minimised through natural staff turnover and redeployment. •The Non Executive Directors of Wilson Bowden plc have resigned and the Executive Directors (with the exception of Nick Richardson) have left or will shortly leave. The Barratt Developments PLC Board will remain unchanged. Mark Clare, Chief Executive, commented: 'When we announced the acquisition of Wilson Bowden I said there was an excellent strategic fit between the two companies. Since then my confidence that we will be able to deliver an enhanced performance by exploiting the strengths of both companies has been further reinforced. 'These early actions are designed to integrate the businesses as soon as possible delivering cost reductions, a strong management team and improved operational performance. At the same time they create the right foundation for us to exploit our improved land position, stronger brands, better geographical spread and strength across the product range. 'It is always regrettable to have to announce redundancies but we have acted swiftly to remove the uncertainty employees have inevitably faced. We will do everything we can to ensure that we integrate the businesses as quickly and as smoothly as possible.' - Ends- For further information please contact: Weber Shandwick Financial 020 7067 0700 Terry Garrett/Chris Lynch/Nick Dibden * The expected synergies have been calculated by Barratt on the basis of the existing and projected cost and operating structures of Barratt and Barratt's estimate of the existing and projected cost and operating structures of Wilson Bowden. Statements of estimated synergies relate to future actions and circumstances which, by their nature, involve risks,uncertainties, contingencies and other factors. As a result, the synergies referred to may not be achieved, or those achieved may be materially different from those estimated. This information is provided by RNS The company news service from the London Stock Exchange
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