26th Sep 2013 09:49
LONDON (Alliance News) - Countrywide PLC Thursday said it will acquire commercial property consultancy Lambert Smith Hampton Ltd for GBP34.1 million in cash after its parent company went into administration.
Lambert Smith Hampton was sold to its management by WS Atkins PLC in 2007, but the new owners have struggled to cope with the debt they took on to do the deal and therefore the holding company has gone into administration despite the operating company remaining profitable.
The company will first be sold by administrators to Sankaty European Investments Sarl in a debt-for-equity swap, and the operating company will then be sold on to Countrywide, which will be free from all debt obligations. This process, where the eventual buyer of the operations is known, is called a pre-pack administration.
Lambert Smith Hampton's clients include the BBC, more than half of the London borough councils and rail firms. It recently completed the sale of the BBC Television Centre in west London for GBP200 million and sold 800 former railway sites raising GBP300 million. It sales in 2012 were GBP64.1 million and its operating profit GBP5 million. Gross assets are approximately GBP17.7 million as at August 2013, Countrywide said in a statement.
"The acquisition of LSH is an important part of Countrywide's continued growth strategy. It will enhance our footprint across the UK and will help to drive more opportunities to our teams operating our core Land and New Homes, and Residential Development & Investment businesses," Countrywide Chie Executive Grenville Turner said in a statement.
Counrywide shares were down 0.6% at 554.5 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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