Gladman was acquired for a total cash consideration of £250m on a debt-free and cash-free basis. Barratt said the transaction combined its “best-in-class” housebuilding operations with Gladman’s “excellent land sourcing and promotion capabilities, providing greater flexibility for landowners and significantly enhancing Barratt’s strategic land credentials”.
UK land promoter Gladman, which has particular strength in southern England, achieved a pre-tax profit of £6.9m for the year ending March 31, 2021, and gross assets of £212.3m.
During the same period, it secured planning consent on 2,760 plots across 15 sites. It secured sales of 2,796 plots on 18 sites to housebuilders and housing associations.
Gladman will join the housebuilding group as a standalone business, with chairman David Gladman and CEO Victoria Hesson leading the company. It will continue to supply land to third parties while offering Barratt another source of strategic land and helping promote the housebuilder’s existing strategic land portfolio.
Steven Boyes, Barratt’s chief operating officer and deputy CEO, said: “Barratt has built a reputation for a disciplined and competitive approach to acquiring land and Gladman’s strong credentials in identifying attractive land and promoting sites through the planning process will be an important addition to the group.
“As always, we are working hard to help address the shortage of homes across the country and today’s 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.”
Victoria Hesson, Gladman’s CEO, commented: “We are very proud of the expertise, track record and reputation Gladman has built over the past 34 years.
“By becoming part of Barratt we can accelerate our growth as the UK’s leading land promoter and help to realise the potential of Barratt’s attractive strategic land holdings, together delivering more high-quality homes and sustainable developments across the country.”
