Deal for collapsed firm鈥檚 work comes as administrator confirms Mears snapped up key Bristol contracts
Balfour Beatty is to target work in new-build social housing after its 拢7尘 purchase of the remnants of Rok鈥檚 business last Friday.
The sale came after social housing maintenance contractor Mears managed to secure a bundle of former Rok contracts in the Bristol area from administrator Pricewaterhouse Coopers, prior to the Balfour Beatty sale.
PwC is continuing to talk to bidders about a small number of remaining contracts, but it is understood that most customers have now terminated their contracts with the collapsed contractor.
Mears picking up the bristol business slightly kicked the stool out from under the administrator
Bbalfour beatty source
A source at Balfour Beatty said that after combining the Rok work with existing contracts, the contractor - through subsidiary Mansell - would have a new-build social housing business worth 拢220m a year.
The source said the purchase gave it the scale to set up a viable national social housing business. The government is planning to build 150,000 affordable homes over the next five years, despite scaling back funding, by allowing housing associations to raise rents.
Rok鈥檚 slide
Value of company at peak 拢440尘
Value when it went into administration 拢34尘
Sale value to Mansell 拢7尘
Turnover last year 拢781尘
Turnover of contracts sold 拢100尘
People employed at collapse 3,800
Staff transferred to Mansell 381
The source said: 鈥淭he rationale is around social housing - it allows us to bring our business from 拢150m a year to 拢220m - but just for new build.鈥�
Balfour Beatty said the acquisition of contracts, which includes some general construction work, will add 拢100尘 to its annual turnover. It will also save 381 jobs at Rok. Just 拢4m of the deal will be paid in cash, with the remainder due upon transfer of the contracts.
Meanwhile, PwC confirmed that social housing contractor Mears bought a number of Rok鈥檚 contracts in the Bristol area, which 好色先生TV understands made it harder to sell Rok鈥檚 social housing business as a whole.
Mears is expected to make a stock exchange statement on the matter within the next few days, but the value of the contracts is not yet known. The source said: 鈥淲ith Mears picking up the Bristol business, it slightly kicked the stool out from under the administrator as there wasn鈥檛 that much left at that point.鈥�
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