PwC Corporate Finance advises Barratt Developments PLC on its acquisition of Gladman Developments Limited

The UK Corporate Finance team is pleased to announce that it has advised Barratt Developments PLC ("Barratt"), the UK's leading national sustainable housebuilder, on its acquisition of the land promoter, Gladman Developments Limited ("Gladman") for a total cash consideration of £250m on a debt free and cash free basis. PwC acted as lead adviser to Barratt, and also provided deal analytics and financial and tax due diligence services.

The acquisition combines Barratt's 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.

Gladman operates as a land promoter in the UK with particular strength in the south of England. In the three years through to 31 March 2019, prior to the onset of the COVID-19 pandemic, Gladman generated average annual sales of £52.5m, EBITDA of £19.6m, operating profits of £18.7m and profit before tax of £18.9m; with an annual average of 4,230 plots securing planning permission and 4,156 plots sold for Gladman's promotion partners over this same period.

Following the acquisition, Gladman will operate as a stand-alone business within the Group led by its experienced management team, including David Gladman, Chairman and Victoria Hesson, CEO. Gladman will continue to supply land to third parties as well as provide an additional route for Barratt to source strategic land and help to promote Barratt's existing strategic land portfolio.

Gladman's existing portfolio, comprising approximately 406 potential sites with an average site size of 242 plots, is expected to deliver an incremental 500 home completions per annum for Barratt from FY25.

The PwC Corporate Finance team was led by Cara Haffey, James Bailey, Laurence Dolan, Zahrah Ramtoola and Gerard Halligan.

Nigel Wilson, Eiysh Ahmed, Gwen Jones and Laura Bushnell provided deal analytics insights. Financial due diligence was led by Jason Wakelam, David Wates and Clare Cheng. Tax Due Diligence was led by Nick Hatton and Sam Coulson.