Vistry buys Countryside Properties in a deal worth £1.25bn, adding to Vistry Group’s existing brands including Bovis Homes and Linden Homes
Vistry Group has announced that it will buy out rival Countryside Properties in a cash and share deal worth £1.25bn, creating the third-largest housebuilder in the country.
Countryside shareholders will receive 0.255 of a Vistry share and 60p in cash for every Countryside share they held – leaving them with 37% of the merged business.
The takeover is expected to be complete by the end of the first quarter of 2023 with the vision that they will generate revenue of £3bn+ a year.
Vistry buys Countryside to ‘expand the delivery of much-needed affordable housing across England’
Greg Fitzgerald, chief executive officer of Vistry, said: “This proposed combination has a highly compelling strategic rationale. It will create a leader in the partnerships housing sector, with the scale and expertise to accelerate profitable growth across both partnerships and house building, and expand the delivery of much-needed affordable housing across England.
“The proposed combination will add the strength of the Countryside brand to Vistry’s own well-established Bovis Homes and Linden Homes brands and will leverage the skills and market knowledge of both the Countryside and Vistry teams.
“We believe there is clear potential to generate material value for both Vistry and Countryside shareholders and wider stakeholders from a combined group with enhanced scale and superior returns and to improve the performance of key parts of Countryside’s business.
“We welcome the support of the Countryside board and the support we have already received from a significant proportion of Countryside shareholders.”
Douglas Hurt, the chairman of Countryside, said: “The combination will create a leading, enlarged partnerships business and is an opportunity to leverage both Countryside’s brand and place-making experience with the growing Vistry partnerships business, alongside Vistry’s established housebuilding business.
“The scale of the combined group will enable the delivery of synergies, operating efficiencies and further growth for the benefit of Countryside Shareholders and wider stakeholders.”
Countryside uses timber frame construction on 59% of its homes
Vistry noted Countryside’s modern methods of construction capability as one of the reasons for the takeover. Countryside already uses off-site timber frame construction on 59% of its homes.
Together, Vistry and Countryside have a combined land bank of more than 80,000 plots.
The deal will create new appointments
The new board structure comprises:
- Greg Fitzgerald will remain the leader
- Ralph Findlay, the non-executive chairman of Vistry, will become the chairman
- Tim Lawlor, the chief financial officer of Countryside, will continue his role
- Earl Sibley, Vistry’s chief financial officer, will become chief operating officer
- Stephen Teagle will be chief executive of the partnerships division
- Keith Carnegie will be chief executive of the housebuilding division
There is an issue with the ascertain the social housing stock is being increased. My own experience shows otherwise. I live on an estate of some 210 social housing properties that is ear-marked for redevelopment. However, when the actual numbers are looked at, they show that the 210 existing properties are to be replaced by 176 social housing units. An actual reduction, which is also occurring with other Countryside projects.