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News Property and Construction Rok solid with £22.5 million acquisition
News Property and Construction Rok solid with £22.5 million acquisition | Rok solid with £22.5 million acquisition |
| Written by Lautaro Vargas | |
| Wednesday, 09 April 2008 | |
 Milton Keynes-based builder, Rok plc, has acquired the entire issued share capital of Northern based Richardson Projects Holdings Ltd, the parent company of Richardson Projects Ltd, for £22.5 million. Established 25 years ago and 97 per cent owned by the Richardson family, this latest purchase sits well with Rok’s trademark slogan of being the ‘Nation’s Local Builder.’ According to Rok there are some 50,000 small building operators in the UK, a highly fragmented £42bn market, which it sees as providing excellent opportunities for growth either by market share gain or through acquisition. Richardson Projects employs over 350 staff of which 180 are skilled trades people. With offices in Rochdale and Leeds and operations across Greater Manchester, Lancashire, Cheshire, Merseyside, North Derbyshire and Yorkshire, the business will be incorporated into Rok’s Northern operations. It specialises in the provision of new build and refurbishment services to the social housing sector principally under a number of long term framework agreements. It also operates a private housing development division which will be wound down over the next two years. “Richardson’s team with its substantial pool of skilled trades people, will extend our service to the social housing market,” said Garvis Snook, Rok chief executive. “The transaction will also enable Richardson to provide the resources and expertise to its existing and potential customers that come from being part of a major national group.” In the year ended 31 August 2007 Richardson reported pre-tax profits of £4.2m – £0.6m related to private housing development division. Net assets of Richardson at completion are expected to be £14m. Founder and chairman, Alan Richardson, will remain with the business for a minimum period of six months to oversee the transition into Rok, while MD, Clive Walker, and other senior managers have signed new service agreements for a minimum period of two years and will be remaining with the business in their present roles. The initial consideration for the acquisition is £22.5m satisfied via £2.25m in Rok plc shares with the balance payable in cash on completion. The sale of the Rok shares is restricted for a two year period. The initial cash consideration of £20.25m is being funded from existing bank facilities.
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