Predators circle £200m remains of Connaught

CONNAUGHT’S surviving businesses could be sold for up to £200m after repairs specialist Mears and construction firm Morgan Sindell carved up its social housing arm.

Administrator KPMG has received a flurry of offers for Connaught’s compliance and environmental divisions, which are trading as normal.

Mears, property consultancy RPS Group and outsourcing group Mitie are understood to have shown an interest in the compliance unit, which advises companies on how to cover themsleves for health and safety regulations when designing buildings. An analyst said it would be valued at around £130m.

There has been an additional series of approaches for the £70m environmental division, which manages estates and forestry areas on behalf of clients, mostly in the US and UK.

It is understood KPMG is treating the auctions of the two remaining parts of Connaught as traditional mergers and acquisitions transactions. The firm believes it can avoid a “fire sale”, although City insiders said the assets were clearly distressed.