Redrow PLC, one of the UK’s leading residential developers of high quality family homes and a FTSE 250 listed company, has agreed to acquire award-winning East Midlands-based Radleigh Homes from Ark Capital Group, of which Peter Gadsby is the chairman and principal shareholder.
The deal will allow Redrow to expand its operations in the East Midlands, and establish a new division there, via a leading regional housebuilder with a successful track record and reputation for building high quality homes in desirable locations.
The acquisition, and investment that will now follow, will lead to more much-needed family homes being developed in the region – benefitting local customers, colleagues and businesses within the supply chain.
Radleigh Homes has been in operation for over two decades and completed around 200 new homes in 2016. The business has a pipeline of over 1,300 plots with planning and a further 1,200 plots controlled under options in its strategic land bank.
It will be re-branded to Redrow and over time homebuyers will have access to the national housebuilder’s wide range of distinctive products, including the award-winning Heritage Collection.
Redrow will be writing to all existing Radleigh Homes’ customers, and key suppliers, confirming that it is business as usual with a seamless transition planned.
Radleigh Homes’ 70 employees will become part of a new Redrow Homes East Midlands division based out of the existing offices on Pride Park, Derby.
In the financial year to the end of June 2016, Redrow completed 4,700 much-needed quality family homes with a turnover of £1.38bn and a profit of £250m. The company was founded by Chairman, Steve Morgan CBE, in 1974 and has now established itself as one of the country’s top housebuilders.
John Tutte, Chief Executive, Redrow, said, “I’d like to thank Peter Gadsby, for the opportunity to acquire the business and I welcome the Radleigh Homes team to Redrow.
“As a result of the deal, additional and much-needed quality homes will be built in the region – benefitting local customers, colleagues and businesses within the supply chain.
“The acquisition will allow us to roll-out the Redrow brand to new customers, and add to our existing portfolio of developments in the East Midlands. We’re looking forward to introducing our award-winning product range to even more homebuyers in the region.”
Peter Gadsby, Radleigh Homes, said, “I am delighted that Redrow have decided to acquire the business as they hold similar values to our own. I have personally known and done business with Steve Morgan CBE for many years and have identified Redrow as the perfect fit to take Radleigh on to the next stage.”
“Also, we share a former passion, having both been former owners and chairmen of our local football clubs, Derby County F.C and Wolverhampton Wanderers F.C respectively.
Peter continued, “I would like to pay special tribute to the Radleigh team who have helped grow the business so successfully over the last 15 years. In particular, the skills and professionalism of our Joint Managing Directors, Tom Finnegan and Chris Neve, who will be remaining with the business to help deliver growth from Radleigh’s established strong position.
“Ark Capital has numerous land holdings under ownership and options and will be working closely with the Redrow team to get necessary consents and to bring these sites forward to development.”
Peter made special mention of the hard work, good humour and commercial advice provided by Radleigh’s long term advisors, East Midlands-based PKF Cooper Parry Group and Geldards, both of whom played a leading role in negotiating and delivering this landmark deal.
Sally Saunders from Cooper Parry said, “We are thrilled to have been involved in one of the largest deals in the sector for some time, which was sellside advised out of the East Midlands.”