Wilson Bayly Holmes-Ovcon (WBHO) subsidiary WBHO UK has acquired a 60% stake in UK construction business Russells for £32.8-million, as well as a 31.7% stake in Russell Homes for £3.25-million.
Russells provides design, installation and project management capabilities in the UK construction sector, while Russell Homes specialises in land acquisition and planning applications in respect of in-house and developer-led residential schemes.
The acquisition forms part of WBHO’s strategy of diversifying its earnings platform. The group has identified the UK as a market with significant potential at acceptable levels of risk.
It previously acquired an 80% interest in Byrne Group, which operates out of the Greater London area and is predominantly a frame contractor with a smaller main contracting and fit-out business.
“The acquisition of the Russells businesses is an excellent strategic fit for the company’s UK operations and will add additional substance to WBHO’s presence in the UK market. Russells has demonstrated strong, yet controlled and sustainable growth over recent years, establishing itself as one of the pre-eminent contractors in the region.
“The Manchester and North West construction markets currently offer a healthy project pipeline and the business has a strong secured order book for the 2019 financial year,” WBHO outlined in a statement issued on Thursday.
The group added that the acquisition of Russell Homes also marks WBHO’s entry into the UK residential property market.
“The business has a number of schemes in various stages from planning permission to build-out with good potential for future growth in the region.”