Contractor set to remain in overseas ownership with management rejig planned by would-be buyer
ISG’s chairman has told staff its deal to sell the business “continues to progress” more than two weeks after he said a sale would be wrapped up “within days”.
The firm’s US owner Cathexis is in negotiations to sell the contractor to a South African businessman but no announcement has been made despite Matt Roche, who is also the chief operating officer of Cathexis, promising on 5 July a deal was “very near”.
In his latest update, seen by Building, Roche said international deals “of this scale and complexity take time to go through”.
But he added: “Nothing has changed. We are going through the process. I fully expect the deal to complete.”
In his 5 July email, Roche had told staff: “The buyer has confirmed that the sale will include a significant investment, which will recapitalise the business and support the return to normal trading.
“I am unable to share details of the buyer until the deal has been signed, which is likely to be within the coming days.”
It is understood the hold-up centres on red tape in the US under the country’s so-called Know Your Client regulations. “It’s taking longer than they thought,” one source said.
News of Roche’s update comes as more details of the sale begin to emerge with the business set to get rid of the chief executive’s role under the new ownership. And Building understands that former finance director Karen Booth, who left earlier this year along with then boss Matt Blowers, has been helping the would-be new owners carry out due diligence on the business.
Once complete, the firm is expected to concentrate on fit-out and frameworks but is looking at pulling out of London contracting.
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