Gleeson plans management buy-out

MJ Gleeson Group PLC has announced a planned management buy-out of its building division, after flagging it in a trading update earlier this month in which it said profits this year will come in below expectations due to the loss-making business.

It said that its unit, Gleeson Construction Services Ltd (GCSL), has entered into an agreement with CHOQS 448 Ltd (MBOCo), a company incorporated for the purposes of a management buy-out of Gleeson's building contracting operations, to transfer certain assets and liabilities of the division to MBOCo.

The Gleeson Group has also agreed to make a debt and equity investment in MBOCo.

MBOCo is currently wholly owned by Martin Smout and Peter Stone, two of the senior managers of the Gleeson building division.