Major housebuilding deal agreed

Bovis Homes has agreed to acquire Galliford Try’s Linden Homes and Partnerships and Regeneration businesses for £1.075bn. The deal will create a national housebuilder with the capacity to build more than 12,000 homes per year over the medium term.The parties have been in discussions about a deal for some time with talks re-opening in September after an earlier round of negotiations did not result in an agreement.The consideration for the transaction, which is subject to the approval of Galliford Try and Bovis Homes shareholders, will be satisfied through a combination of £675m of Bovis Homes shares, £300m in cash and the transfer of Galliford Try’s ten-year private debt placement of £100m.Galliford Try said the deal would realise an appropriate premium for its housing businesses and result in its shareholders having investments in two focused and well-financed businesses, through their continuing 100 per cent shareholding in Galliford Try, and a 29.3 per cent interest in the enlarged Bovis Homes.It added that Galliford Try would be transformed into a well-capitalised, standalone construction-focused group.