Housebuilder increases geographical reach with strategic deal.
Housebuilder Galliford Try is to buy Morrison Construction Services and Morrison Project Investments from AWG PLC for 拢42m cash, debt-free.
Morrison Construction, which has a turnover of approximately 拢330m, will form part of Galliford Try's enlarged construction division. The deal also includes two early-stage PFI projects, but leaves AWG with six completed PFI investments.
Galliford Try said Morrison Construction had 'an excellent strategic fit' with its existing construction business, as they operated in different geographical areas for different clients.
Greg Fitzgerald, Chief Executive of Galliford Try, said: "We believe [the acquisition] will create additional value for shareholders by bringing together two construction businesses with an excellent strategic fit."
It forecast cost savings of about 拢2m a year from the year to June 2007, which it said will broadly equal the one-off costs of achieving those savings. It forecast enhanced earnings per share 'in the medium term'.
Last month, Galliford Try completed the purchase of Lincolnshire housebuilder Chartdale for 拢67m.
