Bovis Homes reopens talks with Galliford Try for £1.1bn deal
Housing group Bovis Homes has resumed talks with Galliford Try in a bid to combine their partnerships businesses.
The Kent-based firm is in discussions with Galliford Try to acquire its partnerships & regeneration divisions and its brand Linden Homes for a total of just under £1.1bn.
Discussions are still in the ‘early stages’, with the firm hoping to combine Galliford Try’s businesses with Bovis Homes’ newly launched partnerships housing division.
Greg Fitzgerald, CEO of Bovis Homes, commented: “Galliford Try’s Partnerships business is a fantastic brand, with a very strong position in the UK. Combining it with Bovis Homes’ newly launched Partnerships Housing Division would enable us to become the partner of choice for delivering more affordable homes at a time when these are needed the most.
Based on my familiarity with the businesses and the compelling strategic rationale, I think this is a massive opportunity and as a substantial shareholder of Bovis Homes, my intention is to subscribe to the placing if the transaction proceeds.“
Graham Prothero, CEO of Galliford Try, added: “The transaction is an exciting opportunity to create two strategically focused businesses.
“The significant cash element within the consideration provides a firm foundation for our newly reorganised Construction business to flourish as an independent company. The strong balance sheet and excellent fit between the combining businesses will be a superb platform for both private housebuilding and partnerships, creating a unique and well-positioned housing provider.
“Much remains to be done before we can present the detailed proposal to our shareholders and wider stakeholders. However, if completed, we are confident this deal will generate significant value for shareholders and a bright future for all three of our businesses.”
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