CONSTRUCTION group Morgan Sindall struck a deal with Connaught’s administrator KPMG to acquire the bulk of its social housing repair operations last night, according to several people close to the agreement.
Morgan Sindall is set to announce the coup to the stock market today, in a move that will secure jobs for around 2,500 of Connaught’s 4,000 social housing staff.
The firm’s Staffordshire-based public sector arm Lovell has taken on the work for between £20m and £40m, and expects to generate around £200m a year from the contracts.
The purchase comes just days after most of Connaught’s business fell into administration,
and rivals have been quick to pounce on its remaining contracts with local authorities.
KPMG said it has already had numerous expressions of interest for the stricken firm’s operations, and that it would keep the business trading until the contracts had been sold.
Rival property firm Mears declined to comment on Connaught’s remaining contracts yesterday. KPMG and Morgan Sindall declined to comment on the sale.