Galliford Try has acquired Southampton-based contractor and mixed-tenure developer Drew Smith as it steps up expansion of its specialist regeneration division.
The FTSE 250-listed firm announced today it had bought the regional company for an undisclosed sum.
The move is part of a strategy for Galliford Try’s Partnerships business to broaden its geographical spread. Last September the division opened a regional office in Bristol to target expansion in the South West.
The purchase comes after the recent publication of Galliford Try Partnerships’ new strategy, targeting growth in key regions around the country where it has yet to establish a presence and can increase the supply of new homes.
The company said that Drew Smith provides “an excellent operational fit for our Partnerships’ business, opening up the southern region to the business, with the company looking to build on the excellent reputation that Drew Smith enjoys among its clients”.
“The current management team and staff at Drew Smith will remain in place, working within the Galliford Try group to accelerate their growth plans.
Stephen Teagle, chief executive of partnerships & regeneration for Galliford Try, said: “We are really excited to have reached agreement with Drew Smith which is a great fit for our growing business. The southern region holds great potential for us to expand our regeneration offering and help accelerate delivery. We look forward to working with new and existing clients to bring forward opportunities to increase the supply of new homes in the area.”
Drew Smith’s current 80-strong management team and staff are expected to “remain in place” in the wake of the acquisition.
In its last full year Drew Smith reported operating profit of £3.4m from revenue of £49.2m.
Earlier this month, Galliford Try revealed it had been forced to set aside £98m to cover the costs of two major legacy contracts in its construction business.
Last month it pulled out of talks to acquire rival Bovis Homes.