Acquisition will create 拢7.5bn-turnover housebuilding giant
Barratt has agreed to buy rival Redrow in a deal worth 拢2.5bn.
The acquisition of Redrow鈥檚 entire share capital will create a housebuilding giant with a combined turnover of 拢7.5bn. The pair between them delivered more than 22,000 homes last year.
The board of Barratt said the move, which will require approval of shareholders and regulators, will generate pre-tax cost savings of at least 拢90m a year by the third year after the completion.
The combined group, which will be known as Barratt Redrow, will be led by current Barratt boss David Thomas, while Barratt鈥檚 chair Caroline Silver will be the chair of the combined group. Matthew Pratt, current boss of Redrow, will continue to serve as chief executive of the Redrow side of the business and act as group executive director.
Once the deal is complete, Barratt鈥檚 shareholders will own around two-thirds of the share capital and Redrow鈥檚 one-third.
See also: Top 50 Housebuilders
In a statement today, the two firms said the move would 鈥渞ealise significant cost synergies from procurement savings and a rationalisation of divisional and central functions鈥�. They also said it would help maintain a robust balance sheet 鈥渂etter protected to operate throughout the cycle鈥�.
Thomas added: 鈥淭he combined group would leverage the respective strengths of both Barratt and Redrow, delivering significant benefits to our people, our supply chains, and - most importantly - our customers.鈥�
Pratt said: 鈥淭ogether, we鈥檒l be in a much better position to offer a broader range of high-quality and energy efficient homes to customers.鈥�
No comments yet