Morgan Sindall Group acquires
30 June 2010
Morgan Sindall Group has acquired Powerminster Gleeson Services
Morgan Sindall Group plc ('Morgan Sindall Group'), the construction and regeneration group, is pleased to announce that it has acquired Powerminster Gleeson Services ('Powerminster') from the MJ Gleeson Group plc ('Gleeson'). Morgan Sindall Group has paid a total cash consideration to Gleeson of £6.61m for the entire issued share capital of Powerminster. Powerminster currently has net assets of £3.6m including £1.8m of cash. The payment was made from existing cash resources.
Powerminster provides a range of facilities management services that include both planned and reactive maintenance to housing associations and housing PFI schemes. The acquisition significantly enhances Morgan Sindall Group's maintenance capability within its affordable housing division, Lovell. The division's response maintenance business, Lovell Respond, is mainly focused in the Midlands, whilst Powerminster has a strong presence in the North West, North East and South East of England. Bringing together the two businesses' complementary expertise and geographical presence creates a UK-wide, planned and reactive maintenance and estates management services business under the Lovell Respond brand.
In the year to 30 June 2009 Powerminster achieved an operating profit of £1.0m on revenue of £18.7m.
Paul Smith, Chief Executive of Morgan Sindall Group plc, said:
"This is an important strategic acquisition for the Group. It gives our existing response maintenance business significant critical mass, creating a nationwide offering and substantially enhancing the range of services we provide. It also leaves us better placed to take advantage of the response maintenance element of future social housing PFI schemes.
"Social housing contracts are increasingly being tendered on a combined planned and responsive maintenance basis. This acquisition ensures that we can continue to meet our clients' needs and further builds on the strong position we hold in the social housing market."
Ends
ENQUIRIES:
Morgan Sindall Group plc Tel: 020 7307 9200
Paul Smith, Chief Executive
David Mulligan, Finance Director
Blythe Weigh Communications Tel: 020 7138 3204
Tim Blythe Mobile: 07816 924626
Paul Weigh Mobile: 07989 129658
Notes to Editors:
Morgan Sindall Group plc is a leading UK construction and regeneration group operating through four divisions of fit out, construction and infrastructure, affordable housing and urban regeneration, which are supported by a specialist investment unit.
Lovell, which has offices throughout England, Scotland and Wales, is one of Britain's leading providers of affordable housing.
Powerminster's current PFI contracts include a £48 million, 28-year facilities management contract for Leeds City Council's Leeds Independent Living Project programme; a £29 million, 31-year contract to provide facilities management services for five extra care housing schemes in Cheshire; a £35 million, 30-year contract for estates management services at the Stanhope estate in Ashford, Kent; a £4 million, 25-year contract to deliver facilities management services at Sheffield Family Courts, and a £32 million, 30-year estates management contract for the Grove Village estate regeneration in Manchester.
This information is provided by RNS
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