Morgan Sindall Group today confirmed it has purchased Powerminster Gleeson in a £6.6 million deal.
The purchase of Powerminster was expected to be announced imminently, as negotiations had been ongoing for some time.
Powerminster provides a range of facilities management services that include both planned and reactive maintenance to housing associations and housing PFI schemes and will significantly enhances Morgan Sindall Group’s maintenance capability within its affordable housing division, Lovell.
The group’s maintenance business, Lovell Respond, is mainly focused in the Midlands, whilst Powerminster has a strong presence in the North-west, North-east and South East of England.
The two business will be combined and will trade under the Lovell Respond brand to create a UK-wide, planned and reactive maintenance and estates management services business.
Commenting on the deal, Morgan Sindall Group chief executive Paul Smith said: “This is an important strategic acquisition for the group.
“It gives our existing response maintenance business significant critical mass, creating a nationwide offering and substantially enhancing the range of services we provide. It also leaves us better placed to take advantage of the response maintenance element of future social housing PFI schemes.”
He added: “Social housing contracts are increasingly being tendered on a combined planned and responsive maintenance basis. This acquisition ensures that we can continue to meet our clients’ needs and further builds on the strong position we hold in the social housing market.”
Powerminster employs in the region of 200 staff and it is not known whether the takeover will result in job losses.
Lovell, which employs over 1,500 people, refurbishes 18,000 homes a year.