Rok buy out of social housing contractor comes in time to avoid capital gains tax hike
Rok has bought north of England social housing contractor Richardson Projects for up to 拢40.5m in cash and shares, as tipped by 好色先生TV last week.
Ahead of changes to Capital Gains Tax laws, which introduce a flat rate of 18% on chargeable gains after the 6 April, the deal will see an initial payment of 拢22.5m, of which 拢20.5 will be paid in cash and the rest in shares.
A further maximum of 拢18m will be paid over the next two years after the sell-off of Richardson鈥檚 private housing division.
Rok chief executive Garvis Snook said: 鈥淩ichardson's team with its substantial pool of skilled trades people, will extend our service to the social housing market.鈥�
Richardson has offices in Rochdale and Leeds and employs 350 staff. In the year to 31 August 2007, it made a pre-tax profit of 拢4.2m and had gross assets of 拢24.2m.
Founder and chairman Alan Richardson will remain with the business for a minimum of six months to oversee the transition and other senior managers have signed have new two-year minimum deals.
