Barratt Developments snaps up land promotor in £250m deal

Barratt said the deal would "significantly" enhance its strategic land credentials. Gladman’s portfolio, which currently has around 406 potential sites with an average site size of 242 plots, is expected to deliver an incremental 500 home completions per year for Barratt from the 2025 full year.

Steven Boyes, chief operating officer, said: "We are working hard to help address the shortage of homes across the country and [the] 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 chief executive Victoria Hesson said: "By becoming part of Barratt we can accelerate our growth as the UK’s leading land promotor."

Under the terms of the deal, Gladman will operate as a stand-alone business within the group and will continue to be led by the current management, including Hesson and with chair David Gladman. The firm will also continue to supply land to third partners as well as Barratt.

The Cheshire-based company, which was founded by Gladman and his wife Karen in the late 1980s, generated average annual sales in the three years to 31 March 2019 of £52.5m. Earnings before tax, interest, depreciation and amortisation over the same pre-Covid period totalled £19.6m, while pre-tax profits were £18.9m.

In the last financial year, to 31 March 2021, it secured planning consent on 2,760 plots across 15 sites. Pre-tax profits were £6.9m.

As at 1115 GMT, shares in Barratt were ahead 1% at 610.4p.