£7m sale will see 235 further redundancies
Rok’s administrators are to sell part of the construction and social housing business to Balfour Beatty subsidiary Mansell for £7m, securing employment for 381 of the collapsed contractor’s remaining staff.
Administrator PwC said the transaction, which will complete later today, will result in a further 235 redundancies, with Rok’s construction businesses in Reading, Crawley, Bristol and Exeter social housing business in Leeds being closed down.
However, the construction businesses in Milton Keynes, Gatwick and Heathrow and the social housing businesses based in the South West and North West of England will all be transferred.
The administrators have kept on a team of more than 150 people across the Group to assist them in the winding down of Rok’s operations.
Jeremy Webb, director and joint administrator, PwC said: “We are delighted that we have been able to secure a sale of part of the business hence preserving employment for 381 people. This is tinged with disappointment that there was not sufficient interest in the other parts and hence the redundancies that have been made today.”
Mansell will pay £4m cash up front for the businesses, will the balance to be paid once contracts are successfully transferred. It said the contracts will add £100m each year to the company’s revenues.
Balfour Beatty chief executive Ian Tyler, said: “The strategic fit between the operations of Rok and Mansell, reinforced by the quality of the Rok management team and staff, presents a big opportunity for us to develop our UK regional business on attractive terms to our shareholders.”