The parent company of Derby-based Bison Manufacturing has agreed to sell the 88-year-old business for £20m.
Bison Manufacturing is set to be snapped up by Northampton-headquartered building materials supplier Forterra in a deal worth around £20m.
Forterra, one of the UK’s largest producers of building products, will acquire the structural precast and hollowcore business Bison from Laing O’Rourke.
Recently listed on the London Stock Exchange, Forterra has recognised the innovation and engineering capacity of Bison, which it believes will complement and enhance its own range of building components.
Laing O’Rourke CEO Ray O’Rourke said the growing residential, commercial and infrastructure demands for manufactured products made this the right time for all parties to leverage their relationship.
“We acquired Bison at the height of the global financial crisis, saving hundreds of regional jobs and allowing the manufacturer’s rich history to continue," he said.
"Now, this collaborative and future-focussed deal will provide enhanced value to Laing O’Rourke, Bison and Forterra.”
In addition to the proposed transfer of ownership, staff and assets, the agreement will strike an exclusive partnership where Laing O’Rourke will continue to deploy Bison products on its projects. The parties have also agreed to a continued sharing of innovation and product development.
They will explore intelligent ways to use each other’s technology alongside their own.
“We will consult with all our hardworking people at Bison during this transition, confident it will mark an exciting next step for their growth, and our ongoing access to industry-leading specialist components.
“The leadership at Forterra has recognised the unique value created through Bison’s alignment with Laing O'Rourke’s manufacturing investment and delivery capability.
“This partnership is part of our commitment to build a more collaborative industry centred on high-quality, off-site modular construction," O’Rourke said.