An agreement has been struck for housebuilder Vistry to acquire Countryside – with Countryside shareholders receiving 0.255 of a Vistry share for each of their shares, plus 60p. Five major shareholders who make up around 40% of the shareholding have backed the plans in addition to the boards of both companies.

The merge creating one of the UK’s leading housebuilders with a revenue totalling more than £3bn – combining expertise in partnerships, housing tenures and affordable housing.

The newly formed business is eyeing up a predicted future operating profit to £800m – and on deal completion, likely to be early 2023, the business would own over 80,000 potential house plots, in addition to 70,000 strategic land plots across 196 sites.

Commenting on the Combination, Greg Fitzgerald, the Chief Executive Officer of Vistry, said:

“This proposed Combination has a highly compelling strategic rationale. It will create a leader in the Partnerships housing sector, with the scale and expertise to accelerate profitable growth across both Partnerships and Housebuilding, and expand the delivery of much needed affordable housing across England. The proposed Combination will add the strength of the Countryside brand to Vistry’s own well-established Bovis Homes and Linden Homes brands and will leverage the skills and market knowledge of both the Countryside and Vistry teams.

We believe there is clear potential to generate material value for both Vistry and Countryside Shareholders and wider stakeholders from a combined group with enhanced scale and superior returns and to improve the performance of key parts of Countryside’s business. We welcome the support of the Countryside Board and the support we have already received from a significant proportion of Countryside Shareholders for the Combination.”

Commenting on the Combination, Douglas Hurt, the Chairman of Countryside, said:

“The Combination will create a leading, enlarged partnerships business and is an opportunity to leverage both Countryside’s brand and place-making experience with the growing Vistry partnerships business, alongside Vistry’s established housebuilding business. The scale of the Combined Group will enable the delivery of synergies, operating efficiencies and further growth for the benefit of Countryside Shareholders and wider stakeholders.

The Countryside Board has carefully reviewed this Combination and believes it offers the best potential to create the greatest value for Countryside Shareholders.”