Bovis rejects GT takeover bid and appoints ex-GT CEO

Bovis Homes has appointed Greg Fitzgerald as its new Chief Executive whilst rejecting Galliford Try’s merger proposal.

Fitzgerald took up his post on April 18 following the departure of David Ritchie in January, he is the former CEO and Chairman of Galliford Try. He spent more than 30 years at the housebuilding and construction business.

During his time as CEO, Fitzgerald oversaw the transformation of GT which increased the scale of its housebuilding business, improving profitability.
Fitzgerald is also a former non-executive director of NHBC. He is currently non-executive chairman at Ardent Hire Solutions and Baker Estates.

Following Fitzgerald’s appointment, interim CEO Earl Sibley will return to his position as group Finance Director.

Bovis also said that GT had withdrawn its takeover offer. Bovis said: “In recent weeks, the company has held discussions with Galliford to assess the merits of Galliford’s merger proposal, focusing on the potential synergies that might result from a combination of the businesses.”

But the Bovis board concluded that the offer “failed to reflect the underlying value of the Bovis business.” It said the board declined the proposal as it believed an independent strategy under the direction of Fitzgerald would deliver greater value for shareholders.

Also issuing an operational update, Bovis said that current sales and reservations were in line with the board’s expectations and that it was “making good progress with our priorities for 2017.” More than half of its employees had undertaken a bespoke Customer Training Programme, with all employees to be targeted by the end of April.