Bovis Homes has completed a £1.1bn deal to buy Galliford Try’s housing and regeneration businesses.
The terms are much the same as initially set out last September, and subsequently agreed in November - and shareholders of each company have now voted to approve the deal valued at approximately £1.1bn, including shares, debt transfer and a £300m cash payment.
The company has also announced it has applied to change its name to Vistry Group PLC, saying the proposed new corporate name will be used for both the enlarged group’s housebuilding and partnerships businesses. The enlarged housebuilding business will continue to operate with both the Bovis Homes and Linden Homes brands.
As expected, Graham Prothero, who was the chief executive officer of Galliford Try, has been appointed as chief operating officer of the company. Prothero was only appointed as Galliford Try chief executive last March, and led a strategic review in April that resulted in 350 job cuts after Galliford Try decided to shrink its construction arm by nearly a third.
Greg Fitzgerald, CEO of Bovis Homes, said: "I am delighted that we have completed the exciting and transformational acquisition of the Linden Homes and Partnerships & Regeneration businesses of Galliford Try plc. The combination of these businesses with Bovis Homes creates a top five housebuilder in the UK with the capacity to deliver over 12,000 homes per year in the medium term.”
“We would like to thank all shareholders for their engagement in this process and look forward to delivering the clear strategic and financial benefits of this combination. Finally, I would like to extend a very warm welcome to all our new colleagues and thank everyone collectively for their continued hard work and focus on our customers during this busy period."
The deal also completes Galliford Try’s planned demerger, with the slimmed down company now confidently describing itself as a “well-capitalised stand-alone construction business, concentrating on its main markets in building, highways and environment, with key positions on the major public and regulated frameworks around the country.”
Bill Hocking, formerly chief executive of Galliford Try’s construction and investments business, has been appointed chief executive of Galliford Try Holdings plc, a newly-listed entity replacing the previous Galliford Try plc on the London Stock Exchange.
Hocking has been joined on the new executive board of the business by finance director Andrew Duxbury and general counsel and company secretary Kevin Corbett.
Ian Jubb, managing director of building, Vikki Skene, HR director and Mark Baxter, managing director of investments and specialist services also become members of the executive board.
The current plc board, led by non-executive chairman Peter Ventress, remains in place, with Bill Hocking joining in his role as chief executive.
Hocking said: “I’d like to thank everyone involved in achieving the challenge of demerging our businesses. We have struck a favourable deal for our shareholders and one that will benefit both ourselves and Bovis Homes for years to come.
“I am excited by the bright future that lies ahead for Galliford Try as a well-capitalised, stand-alone, agile business and I look forward to working with our stakeholders to achieve our mutual objectives.”