Acquisition would create support services giant with annual turnover of £4.1bn.
Contractor and support services firm Carillion has finally bought Mowlem for £291m, bringing to an end months of speculation.
The firm announced this morning that the boards of both companies had agreed terms for the acquisition, valuing Mowlem shares at 205p.
The news creates a massive new firm with a turnover of £4.1bn, and a huge presence in the PFI/PPP markets.
In a statement, Carillion said: “The boards of Carillion and Mowlem are pleased to announce that agreement has been reached on the terms of a recommended proposal whereby Carillion will acquire, for cash and shares, the entire issued and to be issued share capital of Mowlem, by means of a scheme of arrangement under section 425 of the Companies Act.”
Philip Rogerson, chairman of Carillion said: 'The acquisition of Mowlem represents a new stage in Carillion's development and its successful strategy for sustainable and profitable growth."
This is a good deal for Mowlem shareholders which recognises the future prospects of Mowlem and provides improved deliverability at lower risk.
Mowlem chairman Joe Darby
"There is an excellent strategic fit between the two companies and the combined group will be one of the UK's most significant support services and construction companies. We are confident this transaction can deliver excellent value for the shareholders of the enlarged group.'
Commenting on the Proposed Acquisition, Joe Darby, chairman of Mowlem said: 'This is a good deal for Mowlem shareholders which recognises the future prospects of Mowlem and provides improved deliverability at lower risk."
"Mowlem shareholders will receive a significant proportion of their investment in cash while the share element allows them to benefit from the value to be created from the combination of Carillion and Mowlem to form a larger, financially stronger and more competitive construction and support services company."
