U.S. News

Barratt to Buy Wilson Bowden for $4.3Billion


Barratt Developments, Britain's biggest homebuilder, said Monday it agreed to buy Wilson Bowden in a deal that values the company at 2.2 billion pounds ($4.3 billion).

Barratt will pay 950 pence ($18.68) and issue 1.06 new shares for each share of Wilson Bowden, the company said in a statement. The price represents a premium of about 23% on Wilson Bowden's closing price Nov. 23, the last day before the company said it was in talks about a possible offer.

"This is an excellent strategic fit for Barratt which will create a sector leader with strengths right across the market, in terms of both geographical coverage and product offering," said Barratt Chairman Charles Toner. "The benefits of bringing these two well managed groups together will unlock opportunities that will provide added impetus for future growth."

Barratt said it expects the acquisition to boost earnings in the first full year.

Shares in Barratt gained 4.3% to 1,281 pence ($25.19) on the London Stock Exchange, while Wilson Bowden shares dipped 1.6% to 2,275 pence ($44.74).