Keepmoat acquires £40m-turnover developer
DONCASTER regeneration and construction business Keepmoat has acquired a North West developer.
Wigan-based MCI Developments, a residential specialist, is to become part of the Keepmoat group and will bolster the company’s social housing credentials.
MCI turned over £39.2m in the year to 30 April 2016, and returned pre-tax profits of £4.5m – more than double that of the previous year.
MCI Developments is delivering over £70m worth of contracts curently and has a three-year pipeline of sites worth more than £100m.
In the year to March 2016, Keepmoat recorded revenues of £1.1bn, with more than 2,400 properties sold by its homes division. It also agreed an £800m partnership with Sigma Capital PLC in Sheffield for PRS.
Keepmoat chief executive officer, Dave Sheridan, said: “I’m delighted to announce that we have reached an agreement with the shareholders of MCI Developments.
“The MCI Developments model is a natural fit with Keepmoat’s capital light business model and the two businesses already have a number of clients in common. We’re looking forward to working with them towards our common goal of building more homes faster and making a positive contribution to solving the UK housing crisis.”
Andy Garnett, director, MCI Developments, added: “We are delighted to have completed the deal with Keepmoat and we recognise the significant financial and operational benefits that this will generate for the long term growth of our business.”
The shareholders of MCI Developments were advised by the Corporate Finance Advisory team at Deloitte and legal advice was provided by DWF.
