Disposal
May 16 2001 - 7:58AM
UK Regulatory
RNS Number:6985D
Carillion PLC
16 May 2001
Disposal of Carillion Housing
Carillion plc and Morgan Sindall plc have signed heads of terms for the sale
of the business and assets of Carillion Housing to Lovell, a subsidiary of
Morgan Sindall plc, thereby creating the UK's largest affordable housing
company.
The two businesses have complementary skillsets:
Carillion Housing
Refurbishment (residents in occupation)
Strong Scottish base
Relationships with local authorities
Urban regeneration
Lovell
New Build
Major player in London
Relationships with housing associations
Urban regeneration
Mixed tenure development with new homes
Carillion will continue to pursue Private Finance projects in the social
housing market. However, for PFI construction work in this sector, Carillion
and Morgan Sindall intend to develop partnership arrangements.
The sale of its Housing operations reflects Carillon's strategy of adopting a
more focused and selective approach to construction, of developing its PFI and
services-related businesses and of marketing integrated solutions that combine
its skills in both services and construction.
Roger Robinson, Carillion's Operations Director, says, "This is another step
in delivering our strategy of being more selective in construction, focusing
our skills and resources on projects where we can achieve better margins,
while enhancing our ability to offer PFI solutions in the social housing
market".
Carillion Housing's activities include the construction, refurbishment and
repair of social housing and accommodation for Local Authorities, Housing
Associations and Government Departments. When details of the sale are
finalised, the scale of the business to be sold would represent less than five
per cent of Carillion's total turnover in 2000 of #1.9 billion.
For further information
John Denning - Corporate Affairs & Communications
01902 316426
John Davies 01902 316444
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