Multi-million takeover at Walsall family-owned firm Purchase
A building firm has been bought in a multi-million pound deal that sees it fall out of family ownership for the first time in nearly a century.
Walsall-based Purchase Group carries out building and maintenance work for a string of housing associations and local authorities around the UK, including Walsall Housing Group. It has been bought by the Wates Group, an even bigger family-owned construction business.
The deal will see Purchase becomes part of Wates Living Space, but the new owners stress none of the 120 direct employees will lose their jobs and the business will continue to operate from its Reaymer Close head office in Bloxwich.
In addition the grandsons of founder Frank Purchase, who set the business up in the 1920s, will remain at the head of the business.
Former managing director David Purchase will continue as business director of Purchase, reporting to Steve Jackson, managing director of Wates Living Space Maintenance West. Gavin Purchase will remain as operations director.
David Purchase said: "This is an exciting and positive step forward for our business and our people, providing us with the investment and support of a highly respected industry player, which will facilitate future growth within the market.
"Wates' commitment to people and communities is rivaled only by that of our own and it is these shared ethics that will place us as the partner of choice in the affordable housing sector."
The price tag on the deal is not being revealed but Wates has acquired 100 per cent of the Purchase Group, which has an annual turnover of around £30 million.
In addition to its base at Bloxwich, Purchase has offices across the East and West Midlands and in Wales.
Wates' chief executive Andrew Davies added: "Our organisations' combined capabilities and expertise will provide new and existing customers in the Midlands, Wales and the North with a quality asset management and maintenance service, with all the added benefits brought by a family-operated company.
"We have strong shared values of integrity, performance and respect, which are built on a long-standing family heritage.
"The acquisition brings us even closer to achieving our aspirations of becoming the UK's leading maintenance business."
Purchase Group will trade under its own name in the short term but as part of Wates Living Space business.
Privately-owned Wates, set up 117 years ago, employs 2,000 people and posted a turnover of approximately £1bn in 2013.
