Morgan Sindall Group chairman John Morgan has lifted the lid on the company’s acquisition of social housing contracts from striken maintenance firm Connaught.
Morgan Sindall paid £28 million for the contracts - worth up to £200m per year - and related assets after Connaught Partnerships went into administration earlier this week.
Mr Morgan told CNplus that the parts of the company it has acquired would be rebranded as Lovell, Morgan Sindall’s affordable housing division, by Christmas.
He said Morgan Sindall had acquired more than 80 per cent of Connaught’s social housing contracts, leaving those it deemed unprofitable behind.
Mr Morgan said: “Connaught will be rebranded Lovell and will be part of Lovell. It’s exactly what Lovell does and gives it more depth. We expect the implementation to take place by Christmas.”
About 2,500 employees connected with the ongoing contracts will transfer to Lovell as part of the agreement, which will allow essential maintenance services to continue without interruption.
Social housing maintenance firm Connaught Partnerships, which had a turnover in excess of £500m, was placed into administration this week after lenders failed to offer it additional funds.
Mr Morgan added: “We[Lovell] have a £400m turnover in social housing - with Connaught it makes us 50 per cent bigger, and stronger in response maintenance. Our strategy is to have a market leader in the sectors we operate in and this was an opportunity [to meet] that long term strategy.”