In a shock move, Barratt today announced a 拢2.5bn deal to buy Redrow. But what are the key numbers behind the proposed new group? And who will head it up? Here is a quick guide
The housing sector woke this morning to the news of an extraordinary 拢2.5bn deal that will massively increase the size of the largest housebuilder in the UK.
The combined Barratt Redrow housebuilding group, if approved by regulators and shareholders, would dwarf other players in the UK market.
The deal would mean Barratt, already the UK鈥檚 largest housebuilder, would increase its turnover to more than 拢7bn (based on 2023 figures), compared with the 拢4.3bn turnover posted by second biggest builder Taylor Wimpey last year.
>>See also: Barratt agrees to buy rival Redrow in deal worth 拢2.5bn
>>See also: Steve Morgan interview: 鈥業t鈥檚 like the government wants to destroy the industry鈥�
The move is aimed at creating savings of at least 拢90m a year by the third year after completion and to create more resilience in a turbulent market.
News of the deal comes just 15 months after Vistry鈥檚 拢1.2bn acquisition of Countryside and is likely to raise questions about the drawbacks and benefits of consolidation at the top of the housebuilding market.
It comes as regulator the Competition & Markets Authority (CMA) prepares to publish its findings later this month from its study of the housebuilding market. The CMA in November said the 11 largest housebuilders now own or control 117 million plots.
Below are the numbers behind the biggest housing deal the sector has seen in recent times.
Barratt Redrow in numbers
Note: Barratt鈥檚 numbers refer to the year ending 30 June 2023 unless stated otherwise. Redrow鈥檚 figures are for the year to 2 July 2023. The net cash held has reduced since the companies鈥� year end and was 拢874m as of 31 December 2023. Employee numbers are from the firm鈥檚 corporate websites.
The key players in the combined group
The two housebuilders have announced the board and executive team of the proposed combined group. The founder of Redrow, Steve Morgan, has said he is confident the plan will 鈥渃reate a standout home builder for the future and accelerate the delivery of much needed homes across the UK鈥�.
David Thomas (group CEO) Thomas has led Barratt for nearly 15 years, entering the housebuilding sector after previously working in hospitality, retail and video game industries.
Caroline Silver (non-executive chair) Silver has chaired Barratt since last June having spent more than 30 years in investment banking. She has held senior roles at Morgan Stanley and Merrill Lynch and is a trustee of the V&A museum in London
Mike Scott (chief financial officer) Scott has been CFO at Barratt for over two years having previously spent seven years at Countryside, including three as CFO. He previously served as head of investor relations at retailer Sainsbury鈥檚 and worked at auditing and consulting giant PWC.
Steven Boyes (chief operating officer and deputy chief executive) Boyes is in his sixth decade of working for Barratt having joined the housebuilder in 1978 as a junior quantity surveyor. He became chief operating office in 2012 and deputy CEO in 2016.
Matthew Pratt (chief executive officer of Redrow and group executive director). On the Redrow side, current boss Matthew Pratt will join the executive board of the combined group. Pratt has been outspoken about the need for government to reform the planning system to boost housebuilding. He joined Redrow in 2003 as a chief quantity surveyor
Nicky Dulieu (non-executive director) Dulieu is currently a senior independent director of Redrow and will join the combined group as a non-executive director. She is a director at developer Unite Students and is on the board of retailer WH Smith
Geeta Nanda (non-executive director) Nanda, the outgoing chief executive of housing association giant Metropolitan Thames Valley, will join the combined group as a non-executive director.
Barbara Richmond Richmond, currently group finance director of Redrow, will join the new board to help with the integration of the two housebuilders in the short-term.
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