Rok builds with Richardson deal

CONSTRUCTION and maintenance group Rok has bought a company which specialises in house building and refurbishment services to the social housing sector for more than £20m.

Rok has acquired privately-owned building and regeneration specialist Richardson Projects Holdings, the parent company of Richardson Projects, which operates from offices in Leeds and Rochdale.

Alan Richardson and other members of the Richardson family own 97% of the equity of Richardson Projects Holdings.

Richardson was founded in 1983 and operates in Yorkshire, Greater Manchester, Lancashire, Cheshire, Merseyside and Derbyshire.

The company, which employs more than 350 staff, carries out the majority of its contracts under long-term framework agreements.

Founder and chairman Alan Richardson will remain with the business for at least six months following the deal.

Managing director Clive Walker and other senior managers, Stuart Bellfield, Derek Gooch and Jenny Kovaks, have signed new service agreements for a minimum period of two years and will remain with the business in their present roles.

Richardson, which reported pre-tax profits of £4.2m for the year to August 31 2007, also operates a private housing development division which will be wound down over the next two years. The net assets of Richardson are £14m.

Rok is paying £22.5m for Richardson, of which £20.25m is being paid in cash, with the remainder being paid in shares.

A further £18m could also be paid as cash is generated over the next two years from sales of Richardson's private housing assets.

Garvis Snook, Rok's chief executive, said: “We are delighted that such a high quality business as Richardson has decided to become part of Rok. Today Rok is one of the UK's leading providers of services to the social housing sector.

“Richardson's team with its substantial pool of skilled trades people, will extend our service to the social housing market.

“The transaction will also enable Richardson to provide the resources and expertise to its existing and potential customers that come from being part of a major national group.”

Alan Richardson said: “This is an ideal opportunity for Richardson Projects to join a major player in the industry with a similar people orientated culture to our own.

“It will also provide national backing for the existing management team to continue Richardson's growth in the social housing market. The strength that Rok brings will enable Richardson Projects to enhance its service to its clients.”

Martin Donnachie, Rok's managing director in the north, added: “Like Rok, Richardson employs a high proportion of its own trades people to carry out its work which we know produces improved levels of customer satisfaction. We look forward to welcoming Richardson to the Rok family.”

Rok, which was founded in 1939, has made a series of other acquisitions which now sees it operating from a network of offices across the UK.

It has made a number of purchases in the Yorkshire region acquiring Malton-based development and construction company S Harrison Group and Wakefield-based construction firm Lemmeleg, which was co-founded by Yorkshire Forward chairman Terry Hodgkinson.