The company reached agreement today (10 September 2010) to acquire the majority of ongoing contracts and related assets of Connaught Housing Partnerships, the social housing maintenance business of Connaught plc.
Lovell will take over and deliver the contracts allowing essential maintenance services to continue with minimum disruption.The contracts are expected to generate around £200 million of additional annual revenue from responsive maintenance and Decent Homes, planned maintenance contracts.
For Lovell, a £374 million annual turnover business, the acquisition further develops its social housing offering making it one of the largest providers in the UK. It also creates a national, full-service business delivering planned and reactive maintenance as well as new build social and open market affordable housing.
The contracts have been purchased for a total cash consideration of £28 million from existing cash resources.
“This acquisition not only saves several thousand jobs but also significantly enhances our existing social housing provision, opening up huge growth opportunities for us in the responsive and planned maintenance markets,” says Lovell managing director Stewart Davenport. “Lovell is a robust, financially strong business and our new local authority and housing association customers can be confident that their projects will be transferred seamlessly and completed successfully as planned.”
Earlier this year Lovell extended its housing maintenance capability and geographic reach following the strategic acquisition of Powerminster Gleeson Services. All Powerminster’s contracts were transferred to Lovell Respond, the company’s national housing maintenance business.
Photo: Lovell managing director Stewart Davenport.