Alfred McAlpine explained

Alfred McAlpine
Type:Public
Fate:Acquired
Successor:Carillion
Foundation:1935[1]
Defunct:2008
Location:Hooton, Cheshire
Industry:Construction
Business services
Key People:Dr Roger Urwin, (Chairman)
Ian Grice, (CEO)
Num Employees:8,600 (2008)

Alfred McAlpine plc was a British construction firm headquartered in Hooton, Cheshire. It was listed on the London Stock Exchange until it was acquired by Carillion in 2008.

The origins of Alfred McAlpine are strongly associated with the businessman Alfred McAlpine, a son of 'Concrete' Bob McAlpine, and the north western operations of Sir Robert McAlpine. These operations became legally distinct in 1940; 18 year later, the company was floated on the London Stock Exchange under the name Marchwiel Holdings. By this point, Jimmie McAlpine was the chairman of the company, a position he would hold until 1985. Prior to 1983, the company's operations were constrained by a non-compete agreement with Sir Robert McAlpine; while the geographical restriction was removed, some terms of agreement remained in effect between the two companies.

Throughout the second half of the twentieth century, Alfred McAlpine was a major road builder, being responsible for the construction of over 10% of Britain's motorways, including the M6 Toll (as part of the CAMBBA consortium). During the 1980s, it expanded its presence in the home building sector; by the late 1990s, McAlpine was building over 4,000 houses per year. However, the company opted to sell its homebuilding operations to rival company George Wimpey in August 2001. It also owned and operated Penrhyn Quarry, the country's largest slate works; a major accounting scandal at the company's slate subsidiary occurred during the mid 2000s. During February 2008, Alfred McAlpine was acquired by rival company Carillion in exchange for £572m, which made Carillion the biggest support services company in Britain at that time.

History

Alfred McAlpine was one of the sons of 'Concrete' Bob McAlpine and he ran the operations of Sir Robert McAlpine in the north west of England. In 1935, following the death of Sir Robert and his eldest son, Alfred ran the north west independently, although the legal separation was not completed until 1940, when Sir Alfred McAlpine & Son was formed. Under a non-compete agreement with its former parent company, Sir Alfred McAlpine confined itself to civil engineering and to the north west of England.[2] [3]

After the death of its founder, his son Jimmie McAlpine became chairman of the business. During 1958, the company was floated on the London Stock Exchange under the name Marchwiel Holdings, changing its public name to Alfred McAlpine PLC only in 1985.[4] This move came two years after the decision to end the non-compete agreement with Robert McAlpine, allowing the firm to expand geographically. However, some terms agreed by between the two companies were allegedly still in effect, a matter that would lead to legal action being taken into the 21st century.[5] [6]

McAlpine's status as a civil engineer was enhanced during the 1960s by its participation in the motorway building programme and the company became one of the country's leading civil engineers. There had been some limited diversification, including the purchase of Penrhyn Quarry, the country's largest slate works. This slate was occasionally used in the business' other activities.[7] [8] As the civil engineering market declined in the 1970s, McAlpine sought to diversify further into private housebuilding. Acquisitions included Price Brothers in 1978, Frank Sanderson's Finlas in 1982 and Canberra in 1988. Investments had also been made in the US housing industry. By the end of the 1980s, private housebuilding was contributing the major part of the group's profits.[9]

During 1985, Jimmie retired, and handed over chairmanship of the company to his son Robert James "Bobby" McAlpine.[10] In 1991, Bobby brought in an outside chief executive and resigned as chairman one year later, by which time the family no longer owned a controlling shareholding in the business. Under new management, there was further concentration on private housebuilding, including the acquisition of Raine Industries. By the late 1990s, McAlpine was building over 4,000 houses per year and was one of the industry's top ten.[9] [11]

During the mid 1990s, rival British construction firm Amec Foster Wheeler made an all-share offer to merge with Alfred McAlpine; however, the latter's board voted against the move.[12] [13]

By the turn of the century, there was increasing speculation over the future of the company and, in August 2001, Alfred McAlpine sold its housebuilding operations to rival company George Wimpey in exchange for £461m, after which McAlpine announced plans to return in excess of £100m to its shareholders during the following years.[14] [15] Later that same year, it acquired Kennedy Utility Management for £52m.[16] In 2002, the business acquired Stiell, a facilities management and information technology network systems business, for £85m.[17] [18] In May 2006, Alfred McAlpine commenced its largest ever facilities and building management services contract for Mapeley's entire UK property portfolio; by this point, 75 percent of the company's activities was in the private sector.[19]

During February 2007, the company took a £13m hit after serious accounting irregularities were discovered that were later attributed to the deliberate collusion of several managers at its slate business across multiple years.[20] Several former managers later admitted to charges of fraud related to this incident.[21] It was speculated that Alfred McAlpine may have to part with its slate activities entirely.[22]

During October 2007, reports emerged that two takeover bids made by rival company Carillion had been rejected by Alfred McAlpine.[23] [24] In February 2008, Carillion acquired the company in exchange for £572m, even though this amount was less than Carillion had originally offered for the firm.[25] [26] The move, which made Carillion the biggest support services company in Britain, quickly led to the selling off various parts of the former company being initiated that same year.[27] [28]

Structure

It had three business streams:

It also owned Alfred McAlpine Slate, which was the world's largest producer of natural slate.[29]

Major projects

Projects undertaken by the company included:

References

Sources

External links

Notes and References

  1. Web site: "McAlpine vs McAlpine" High Court Judgement . Her Majesty's Courts Service . 31 March 2004 . 11 July 2008 . https://web.archive.org/web/20060517213441/http://www.hmcourts-service.gov.uk/judgmentsfiles/j2440/mcalpine-v-mcalpine.htm . 17 May 2006.
  2. Gray 1987, pp. 23-25.
  3. Web site: What's in a name, court asks in McAlpine dynasty case . The Guardian . Mark . Milner . 3 March 2004 . en-GB.
  4. Gray 1987, pp. 68-69.
  5. Web site: The McAlpine family at war . constructionnews.co.uk . 11 March 2004 . David . Rogers . en-GB.
  6. Web site: McAlpines in bitter dispute over rival's use of family name . The Independent . Danielle . Demetriou . 23 December 2003 . en-GB.
  7. Web site: Slate waste aggregate for unbound pavement layers . nottingham.ac.uk . Eric . Goulden . September 1992 . en-GB.
  8. Web site: Alfred McAlpine to use slate waste as road sub-base . New Civil Engineer . 2 May 2002 . Andrew . Mylius . en-GB.
  9. Wellings, Fred: Dictionary of British Housebuilders (2006) Troubador.,
  10. Web site: Sir Alfred McAlpine and Son . Graces Guide . 10 November 2012.
  11. Web site: Contractor has Hassall Homes landbank in its sights in takeover talks Alfred McAlpine is preying for Raine . constructionnews.co.uk . 1 May 1997 . Aaron . Morby . en-GB.
  12. Web site: Amec to seek new talks . The Independent . Russell . Hotten . 20 December 1995 .
  13. Web site: Engineer rejects 100p-a-share bid before having its own offer turned down by McAlpine. Amec rebuffs Kvaerner move . 28 November 1995 . Herald and Times.
  14. Web site: Wimpey buys McAlpine building unit . . 14 August 2001 . 11 July 2008 . en-GB.
  15. Web site: Wimpey Homes in McAlpine takeover . The Guardian . 14 August 2001.
  16. Web site: Alfred McAlpine . UK Business Park . 21 March 2001 . 11 July 2008 . Alfred McAlpine has acquired Kennedy, the Manchester-based construction services group, for £52m. . dead . https://web.archive.org/web/20081002032927/http://www.ukbusinesspark.co.uk/ale55454.htm . 2 October 2008 . en-GB.
  17. Web site: Alfred McAlpine . UK Business Park . 4 March 2002 . 11 July 2008 . Alfred McAlpine has acquired Stiell, the facilities management company with 1,200 staff at offices in Glasgow, Manchester, London and Belfast, for £85m. . dead . https://web.archive.org/web/20081002032927/http://www.ukbusinesspark.co.uk/ale55454.htm . 2 October 2008 . en-GB.
  18. Web site: Directors turn (pounds) 40,000 investment into millions Alfred McAlpine snaps up Stiell Group in (pounds) 85m cash and shares transaction . heraldscotland.com . 2 March 2002 . en-GB.
  19. Web site: Interview: Alfred McAlpine Business Services MD, CraigMcGilvray, talks to Jane Fenwick about recent successes and future prospects . Premises and Facility Management . 15 May 2006 . en-GB.
  20. Web site: McAlpine hit by accounting black hole at Welsh slate quarry . The Guardian . Fiona . Walsh . 27 February 2007 . en-GB.
  21. Web site: Two slate directors admit fraud . BBC News . 8 May 2009 . en-GB.
  22. Web site: Multi-million fraud could mean sell-off of McAlpine slate . dailypost.co.uk . 9 July 2007.
  23. Web site: Alfred McAlpine rejects two overtures from Carillion . The Guardian . Terry . Macalister . 17 October 2007 . en-GB.
  24. Web site: McAlpine rejects £584m takeover approach . WalesOnline . 17 October 2007 . en-GB.
  25. Web site: Carillion agrees to buy McAlpine . . 10 December 2007 . 11 July 2008 . en-GB.
  26. Web site: Alfred McAlpine agrees reduced takeover offer . The Guardian . Dan . Milmo . 10 December 2007 . en-GB.
  27. Web site: Carillion calls off £20m sale of Alfred McAlpine division . building.co.uk . Tom . Bill . 19 December 2008 . en-GB.
  28. Web site: Carillion profit up on Alfred McAlpine acquisition . Reuters . 28 August 2008 . en-GB.
  29. Web site: The massive fraud at Welsh Slate . constructionnews.co.uk . 24 September 2009 . Rhiannon . Hoyle.
  30. Gray 1987, p. 35.
  31. Gray 1987, p. 107.
  32. Gray 1987, p. 79.
  33. Gray 1987, p. 184.
  34. Gray 1987, p. 188.
  35. Gray 1987, p. 14.
  36. Gray 1987, p. 137.
  37. Gray 1987, p. 174.
  38. Web site: Jackfield Bridge . . en-GB.
  39. Web site: The Re-negotiation of the PFI-type deal for the Royal Armouries Museum in Leeds . . 17 . 18 January 2001 . 11 July 2008 . 30 October 2008 . https://web.archive.org/web/20081030023225/http://www.nao.org.uk/publications/nao_reports/00-01/0001103.pdf . dead . en-GB.
  40. Web site: Galpharm Stadium . Engineering Timelines . https://web.archive.org/web/20110710192756/http://www.engineering-timelines.com/scripts/engineeringItem.asp?id=260 . 10 July 2011 . en-GB.
  41. Web site: Facts and Figures . The JJB Stadium . 11 July 2008 . https://web.archive.org/web/20080328153132/http://www.jjbstadium.co.uk/facts/ . 28 March 2008 . en-GB.
  42. Web site: Welcome to Living Space – Housing Regeneration . living-places.org.uk . 15 March 2015 . 2 April 2015 . https://web.archive.org/web/20150402175057/http://www.living-places.org.uk/index.php?id=32 . dead . en-GB.
  43. Web site: £113M Wythenshawe Hospital development . 20 August 1998 . New Civil Engineer . 7 April 2018 . 8 April 2018 . https://web.archive.org/web/20180408073517/https://www.newcivilengineer.com/113m-wythenshawe-hospital-development/849463.article . dead . en-GB.
  44. Web site: Hereford PFI deal closed . 23 April 1999 . Building . 1 April 2018 . en-GB.
  45. Web site: M6 Toll (formerly Birmingham Northern Relief Road) . The Motorway Archive . 11 July 2008 . https://web.archive.org/web/20080808143630/http://www.iht.org/motorway/m6toll.htm . 8 August 2008 . dead . en-GB.
  46. Web site: HICL announces additional investments in 4 existing projects . 6 August 2012 . InfraRed . 2 April 2018 . 2 April 2018 . https://web.archive.org/web/20180402230232/https://www.ircp.com/news-media/news/article/hicl-announces-additional-investments-in-4-existing-projects.html . dead . en-GB.
  47. Web site: Clinical and research centre reaches milestone . 7 November 2005 . University of Cambridge . 8 February 2018 . en-GB.
  48. Web site: The lessons of Bluestone . 5 June 2012 . https://web.archive.org/web/20160304043337/http://www.locumconsulting.com/pdf/LDR19LearningTheLessonsOfBluestone.pdf . 4 March 2016 . dead . en-GB.

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