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Balfour Beatty acquire Doncaster-based social housing builder Strata in £10 million deal
Balfour Beatty has acquired Strata Construction, a Doncaster-based company specialising in the construction of affordable housing, for £10.3million.
Strata Construction is primarily a family-owned business and was founded 90 years ago, it was sold by chairman and owner Irving Weaver.
Sister company Strata Homes, a separate company specialising in private housebuilding and also owned by Mr Weaver, and its subsidiaries are unaffected by the sale.
Balfour Beatty, which operates in construction services, professional services, support services and infrastructure investments, said the acquisition would add to its subsidiary Mansell's existing portfolio of affordable housing business and will form part of Mansell's Midlands & North Division, which currently has little exposure to the affordable housing market in the Yorkshire region.
Strata has a network of framework contracts with resident social landlords and also has experience in the education and healthcare sectors.
Giles Taylor, KPMG corporate finance director in Leeds, who advised Strata Construction, said: “This transaction shows that a good contracting business in a strong niche, like affordable housing, can still be a highly attractive strategic acquisition opportunity, even against the backdrop of the recession.
"The business has strong Yorkshire roots and together with its management team has a great reputation in its markets.
"Provided with the support of a group like Balfour Beatty will, I am confident, allow it to go from strength to strength.”
Strata Construction was also advised by Yunus Seedat of Addleshaw Goddard.
The company made pre-tax profits of £1.8million on turnover of £34.4million in 2007 and profits of £1.3million on turnover of £33.5million in 2008.
Strata Construction is primarily a family-owned business and was founded 90 years ago, it was sold by chairman and owner Irving Weaver.
Sister company Strata Homes, a separate company specialising in private housebuilding and also owned by Mr Weaver, and its subsidiaries are unaffected by the sale.
Balfour Beatty, which operates in construction services, professional services, support services and infrastructure investments, said the acquisition would add to its subsidiary Mansell's existing portfolio of affordable housing business and will form part of Mansell's Midlands & North Division, which currently has little exposure to the affordable housing market in the Yorkshire region.
Strata has a network of framework contracts with resident social landlords and also has experience in the education and healthcare sectors.
Giles Taylor, KPMG corporate finance director in Leeds, who advised Strata Construction, said: “This transaction shows that a good contracting business in a strong niche, like affordable housing, can still be a highly attractive strategic acquisition opportunity, even against the backdrop of the recession.
"The business has strong Yorkshire roots and together with its management team has a great reputation in its markets.
"Provided with the support of a group like Balfour Beatty will, I am confident, allow it to go from strength to strength.”
Strata Construction was also advised by Yunus Seedat of Addleshaw Goddard.
The company made pre-tax profits of £1.8million on turnover of £34.4million in 2007 and profits of £1.3million on turnover of £33.5million in 2008.
Thu, 24th Dec 2009