Feast completes on Montpellier non-cores

Roger Feast, who formerly headed up the Montpellier Group's £430m-a-year construction division, has completed the acquisition of four of its smaller "non-core" construction businesses.
The four are: Cornhill Interiors, a fit-out specialist in London; Lodge & Sons, a renovator of specialist buildings such as churches; YJL Facilities, which provides services to M&E players in London; and McLaren Construction.
They have a total turnover of £30m and in the 12 months to September 2002 made an overall loss of £1.1m. While two were profitable, Cornhill Interiors and YJL Facilities made a loss largely as a result of having been set up only within the past two years. "Those two have just about got to critical mass now," said Feast, who envisages them moving into profit in the future. "All four are well funded," he added.
Feast is 100% owner of three of the four. He has a 30% stake in McLaren, which was set up nearly three years ago by Kevin Taylor, who has the remaining 70% interest. It operates in the industrial and commercial new build market in the South East.
Three of the businesses were each sold for just £1, but Montpellier added £383,000 to give them an overall net asset value of £495,000. There is also a six-year £350,000 loan from Montpellier. The stake in McLaren Construction was sold at its book value of £150,000.
Montpellier group managing director Paul Sellars said: "The smaller businesses just weren't the way forward for Montpellier. With our investments division also gone, we will be more focussed on seeking further construction acquisitions."
Ballast had been put under Montpellier's microscope but this had not prompted action.
"There was the pension fund issue, plus the lack of any compelling logic in buying a struggling construction business," Sellars explained.