Cooper Parry Corporate Finance have played a leading role in the negotiation and delivery of a landmark deal.
Redrow PLC, one of the UK’s leading residential developers of high quality family homes and a FTSE 250 listed company, has agreed to acquire East Midlands – based Radleigh Homes from Ark Capital Group of which Peter Gadsby is the chairman and principal shareholder.
Peter made special mention of the hard work, good humour and commercial advice provided by Radleigh’s long term advisors, Cooper Parry Group and Geldards.
Andy Parker, Head of Cooper Parry Corporate Finance, said:
“We are thrilled to have been involved in one of the largest deals in the sector for some time which was sellside advised out of the East Midlands.”
The acquisition will allow Redrow to expand and establish a new division in the East Midlands via a leading regional housebuilder with a successful track record and reputation for building high quality homes in desirable locations.
The acquisition, and investment that will now follow, will lead to more much-needed family homes being developed in the region – benefitting local customers, colleagues and businesses within the supply chain.
Radleigh Homes has been in operation for over two decades and completed around 200 new homes in 2016. The business has a pipeline of over 1,300 plots with planning and a further 1,200 plots controlled under options providing Redrow a significant strategic land bank.
It will be re-branded to Redrow and over time homebuyers will have access to the national housebuilder’s wide range of distinctive products, including the award-winning Heritage Collection.
Redrow will be writing to all existing Radleigh Homes’ customers, and key suppliers, confirming that it is business as usual with a seamless transition planned.
Radleigh Homes’ employees will become part of a new Redrow Homes East Midlands division from its offices in Pride Park, Derby.
In the financial year to the end of June 2016, Redrow completed 4,700 much-needed quality family homes with a turnover of £1.38bn and a profit of £250m. The company was formed by Chairman, Steve Morgan CBE, in 1974 and has now established itself as one of the country’s top housebuilders.
The transaction does not include Peter’s holding company, Ark Capital, under which his commercial property interests include Cedar House, Miller Birch and various joint ventures. Major projects currently in the pipeline have a development value in excess of £200m.
John Tutte, Chief Executive, Redrow, said:
“I’d like to thank Peter Gadsby, for the opportunity to acquire the business and welcome the Radleigh Homes team to Redrow.
As a result of the acquisition, additional and much-needed quality homes will be built in the region – benefitting local customers, colleagues and businesses within the supply chain.
The acquisition will allow Redrow to roll-out its brand to new customers in the Derby area, adding to its existing portfolio of developments in the East Midlands region. We’re looking forward to introducing our award-winning product range to even more homebuyers in the region.”
Peter Gadsby, Radleigh Homes, said:
“I am delighted that Redrow have decided to acquire the business as they hold similar values to our own. I have personally known and done business with Steve Morgan CBE, for many years and have identified Redrow as the perfect fit to take Radleigh on to the next stage.”
Peter continued, “I would like to pay special tribute to all of the Radleigh team who have helped grow the business so successfully over the last 15 years. In particular, the skills and professionalism of our Joint Managing Directors, Tom Finnegan and Chris Neve, who will be remaining with the business to deliver the substantial growth from Radleigh’s established strong position.”
“Ark Capital has numerous land holdings under ownership and options and will be working closing with the Redrow team to get necessary consents and bring these sites forward to development.”