Galliford Try acquires Miller Construction for £16.57m
Galliford Try Plc has announced the acquisition of the Miller Construction business from Miller Group Holdings for £16.57 million.
The Acquisition is cash accretive and will be earnings enhancing in the year ending 30 June 2015 (including one-off restructuring costs).
Miller Construction is a UK only construction business which delivers building and infrastructure projects to both the public and private sectors. In the year to 31 December 2013, the company reported revenue of £409 million.
It has touted its construction business for sale this year after exiting a number of loss-making contracts and restructuring following £4 million losses before interest and tax. Miller is expect to return to profit in 2014.
Galliford Try has identified a total of £7 million per annum of cost synergies, restructuring costs for which are expected to be £4 million during the year ending 30 June 2015.
Galliford said the acquisition was consistent with its strategy of disciplined and selective growth in its construction business, and its focus on developing its regional and national frameworks. Its Directors believe the price represents a very attractive valuation.
Its enlarged construction business now has a turnover of £1.25bn with £1.5bn targeted by the end of 2018. The acquired order book of £1.4bn doubles the Group’s order book to £2.8bn.
Commenting on the Acquisition, Greg Fitzgerald, Chief Executive of Galliford Try, said: “We are delighted to announce the acquisition of Miller Construction, achieved at a very good price and with no net cash consideration. The acquisition brings together two construction businesses with a strong strategic fit and accelerates our strategy of growth into an improving marketplace.
“Galliford Try believes this is a tremendous opportunity for both businesses, having been impressed with the successful transformation of Miller Construction in recent years. Our current strategy until 2018 is to selectively grow our construction business and the acquisition of Miller Construction is a significant step down that path for us.”
Philip Bowman, Chairman of The Miller Group, said: “The acquisition of Miller Construction by Galliford Try will provide it with a strong base from which to grow its competitive position and continue to serve its clients. It will also enable The Miller Group to concentrate all its efforts on expanding its property interests now that the housing and commercial property markets are again showing strong signs of growth.”