Redrow acquires Radleigh Homes for mystery sum
Listed-house developer Redrow has agreed to acquire Radleigh Homes from Ark Capital Group, but is concealing the value of the deal because of what it says is “commercial sensitivity”.
The deal will allow Flintshire-based Redrow to expand its operations in the East Midlands, where Radleigh is based, and establish a new division there
Redrow says acquisition, and investment that will now follow, will lead to more much-needed family homes being developed in the region – benefiting 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 more than 1,300 plots with planning and a further 1,200 plots controlled under options in its 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’ 70 employees will become part of a new Redrow Homes East Midlands division based out of the existing offices on Pride Park, Derby.
In the financial year to the end of June 2016, Redrow completed 4,700 family homes with a turnover of £1.38bn and a profit of £250m. The company was founded by chairman and Wolverhampton Wanderers owner Steve Morgan in 1974.
John Tutte, chief executive, Redrow, said, “I’d like to thank Peter Gadsby, for the opportunity to acquire the business and I welcome the Radleigh Homes team to Redrow.
“As a result of the deal, additional and much-needed quality homes will be built in the region – benefiting local customers, colleagues and businesses within the supply chain.
“The acquisition will allow us to roll-out the Redrow brand to new customers, and add to our existing portfolio of developments in the East Midlands. 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 for many years and have identified Redrow as the perfect fit to take Radleigh on to the next stage.”
“Also, we share a former passion, having both been former owners and chairmen of our local football clubs, Derby County FC and Wolverhampton Wanderers FC respectively.”
Radleigh’s long term advisers, East Midlands-based PKF Cooper Parry Group and Geldards, both played a leading role in negotiating and delivering the deal.
Sally Saunders from Cooper Parry 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.”
