Galliford Try has bought specialist affordable housing contractor Kendall Cross Holdings for £9.3m.
The construction and housebuilding group will pay for the north-east based contractor in cash, with £1.5m on deferred terms.
Considerable track record
Galliford Try said Kendall Cross had a considerable track record in working on a partnership basis for housing associations and local authorities. For the financial year ended 31 May 2007, Kendall Cross reported profits before tax and exceptional items of £1.6m on a turnover of £23.3m. It is expected to have net assets at completion of £3.7m.
Key to strategy
Greg Fitzgerald, chief executive at Galliford Try, said: ‘The expansion of our affordable housing and regeneration business is a key element of our strategy going forward.
The acquisition of Kendall Cross provides an established platform to grow the business in the north east of England, an area in which we do not currently have a presence and in which we see considerable potential.’