Galliford Try gets Miller Construction at giveaway price
By Chris Sleight11 July 2014
UK-based Miller Group has agreed to sell its UK£409 million (€ 515 million) per year construction division to domestic rival Galliford Try for UK£16.6 million (€20.9 million).
However, the deal will include the business’s cash balance of UK£ 23 million (€36 million), meaning Miller is effectively paying for Galliford Try to take its loss-making construction division off its hands.
Galliford Try chief executive Greg Fitzgerald said, “We are delighted to announce the acquisition of Miller Construction, achieved at a very good price and with no net cash consideration. The acquisition brings together two construction businesses with a strong strategic fit and accelerates our strategy of growth into an improving marketplace.”
Philip Bowman, chairman of The Miller Group, said, “The acquisition of Miller Construction by Galliford Try will provide it with a strong base from which to grow its competitive position and continue to serve its clients. It will also enable The Miller Group to concentrate all its efforts on expanding its property interests now that the housing and commercial property markets are again showing strong signs of growth.”
Miller Construction undertakes infrastructure and building projects in the UK. Last year it had revenues of UK£409 million (€ 515 million), on which it made a pre-tax loss of UK£4 million (€ 5 million). A statement from Galliford Try added, “During the 2013 financial year and subsequently, Miller Construction has restructured or exited a number of mainly loss-making contracts and is now anticipated to return to profitability in the current year.”