Barratt Developments plc said it acquired Congleton, Cheshire-based land promoter Gladman Developments Limited for £250 million in cash.
“The acquisition combines Barratt’s best in class housebuilding operations with Gladman’s excellent land sourcing and promotion capabilities, providing greater flexibility for landowners and significantly enhancing Barratt’s strategic land credentials,” said Barratt.
“Gladman operates as a land promoter in the UK with particular strength in the south of England.
“In the three years through to 31 March 2019, prior to the onset of the COVID-19 pandemic, Gladman generated average annual sales of £52.5m, EBITDA of £19.6m, operating profits of £18.7m and profit before tax of £18.9m; with an annual average of 4,230 plots securing planning permission and 4,156 plots sold for Gladman’s promotion partners over this same period.
“In its last financial year, to 31 March 2021, Gladman, despite the ongoing disruption created by COVID-19, secured planning consent on 2,760 plots across 15 sites with a high planning success rate and, through its targeted marketing, secured sales of 2,796 plots on 18 sites to housebuilders and housing associations.
“In the year to 31 March 2021 Gladman reported profit before tax of £6.9m and gross assets of £212.3m at that date.
“Following the acquisition, Gladman will operate as a stand-alone business within the group led by its experienced management team, including David Gladman, chairman and Victoria Hesson, CEO.
“Gladman will continue to supply land to third parties as well as provide an additional route for Barratt to source strategic land and help to promote Barratt’s existing strategic land portfolio.
“Gladman’s existing portfolio, comprising approximately 406 potential sites with an average site size of 242 plots, is expected to deliver an incremental 500 home completions per annum for Barratt from FY25.”
Steven Boyes, Chief Operating Officer and Deputy Chief Executive at Barratt Developments plc, said: “Barratt has built a reputation for a disciplined and competitive approach to acquiring land and Gladman’s strong credentials in identifying attractive land and promoting sites through the planning process will be an important addition to the group.
“As always, we are working hard to help address the shortage of homes across the country and today’s acquisition of a long-standing and trusted partner will further strengthen our ability to deliver our medium-term target to build 20,000 high quality homes per year.”
Gladman Developments CEO Victoria Hesson said: “We are very proud of the expertise, track record and reputation Gladman has built over the past 34 years.
“By becoming part of Barratt we can accelerate our growth as the UK’s leading land promoter and help to realise the potential of Barratt’s attractive strategic land holdings, together delivering more high quality homes and sustainable developments across the country.”