Housebuilder Barratt to buy Deeside based Redrow for £2.5bn
Housebuilder Barratt Developments has agreed to a £2.5bn deal to buy Deeside-based rival Redrow.
The move aims to combine the strengths of both companies, creating a leading force in the industry.
The UK’s largest housebuilders said the combination would deliver around £90m in pre-tax cost savings by the end of the third year following completion.
The merger, facilitated through an all-share offer, has been met with enthusiasm from both boards.
Central to the merger’s appeal is the support from Steve Morgan, founder of Redrow.
Morgan’s backing, coupled with commitments from Bridgemere Securities Limited, his family investment vehicle, and Redrow’s largest shareholder, signifies a strong vote of confidence in the combined entity’s future.
David Thomas, Group Chief Executive of Barratt, expressed his respect for Redrow, highlighting the merger as an “exciting opportunity to bring together two highly complementary companies.”
He said: “We have great respect for Redrow, its overall strategy, its leadership and employees, and its high-quality homes and communities.”
“This is an exciting opportunity to bring together two highly complementary companies, creating an exceptional homebuilder in terms of quality, service, and sustainability, able to build more of the high-quality homes this country needs.”
“The Combined Group would leverage the respective strengths of both Barratt and Redrow, delivering significant benefits to our people, our supply chains, and – most importantly – our customers.”
Matthew Pratt, Group Chief Executive of Redrow, said:
“Redrow and Barratt combined creates a leading UK homebuilder. Together, we’ll be in a much better position to offer a broader range of high-quality and energy-efficient homes to customers.”
“The Redrow brand, with its premium, characterful homes, has an excellent reputation and will remain a key part of the Combined Group. As with Barratt, Redrow’s fifty-year success story is based on its people, products, and supply chain partners.”
“Both businesses are a great fit and there are many exciting opportunities to innovate and share knowledge across a range of different areas.”
Commenting on the merger, Steve Morgan, Redrow’s founder, said:
“During the 50 years since I founded Redrow, I could not be more proud of the unique reputation it has earned for building premium homes and thriving communities.”
“Barratt is a homebuilder I have long admired due to their likeminded attention to quality. I am confident that the Barratt / Redrow combination with their three high-quality complementary brands will create a standout home builder for the future and accelerate the delivery of much-needed homes across the UK.”
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