Bovis Homes has agreed to buy Galliford Try's housebuilding businesses for just over £1 billion.
The deal to acquire Linden Homes and Galliford's Partnerships & Regeneration businesses will make it one of the UK's top five housebuilders, able to deliver more than 12,000 homes a year, Bovis said. It is expected to achieve pre-tax cost synergies of at least £35 million a year.
Greg Fitzgerald, CEO of Bovis Homes said: "This is an exciting and transformational opportunity to create a leading UK housebuilder with an enhanced customer proposition and the ability to increase delivery to more than 12,000 new homes per year.
"The combination with Galliford Try Partnerships gives Bovis Homes a market leading position in the high growth, more resilient partnerships market, with significant potential to increase revenue and profit while delivering more affordable homes at a time when they are needed more than ever."
Galliford Try shareholders will receive a stake of 29.3% of the enlarged group. Bovis will continue to use the Linden brand. The businesses are expected to be integrated early next year.
Peter Ventress, chairman of Galliford Try plc, said: "This transaction is a positive development which is in the best interests of both our shareholders and wider stakeholder group. For Galliford Try, it establishes a focused and well-capitalised construction business led by a very experienced and dedicated management team.
"Supported by a robust order book and strong market positions in key sectors, Galliford Try will be well positioned for the future. This transaction also creates one of the UK's leading Housebuilding and Partnerships businesses with great opportunity ahead, from which Galliford Try shareholders will benefit through their continued shareholding." .
