Martin Tidd MCIOB, chief executive of City-based Chartered Building Company Primus, and a former director of Multiplex, blogs for CM on the behind-the-scenes negotiations that led to a dramatic deal to take over Rok’s London and south east business.
A telephone call came in on the 18th November to say there was an opportunity to get in and look at the Rok business, now in administration. Truth was we had been tracking the situation for the past three months and knew it was only a matter of time before something material at Rok occurred.
I made a quick call to my Commercial Director, Neil Sammes, to re-route him down to Rok’s Reading office where the administrator was running the UK business. It transpired that Mansell had elected to acquire certain parts of the business and other parts were still up for grabs.
We knew we had to move quickly, as the business had been in administration for two weeks already. Neil got shown into a small broom cupboard, which was to be his data room for the next 12 hours!
I received a late night phone call from Neil to say he thinks it’s a goer. We work over the weekend assessing the numbers and arrange to meet the senior Rok guys on the Monday down at Reading.
It was strange going into the Rok office, empty and void of staff as most had been made redundant on the Friday. Quite sad really, to see the human impact of crass decisions made at plc level.
We were impressed with the senior guys and the honesty and transparency shown as we review umpteen contracts, warts and all.
There is much deliberation over the next 24 hours as to what we think the business is worth and what our commercial tactics need to be to acquire it.
We then get word that Kier are sniffing around the business and a few contractors are approaching Rok’s client’s direct, offering to complete existing Rok contracts. We need to get a move on.
We meet the team from administrator PwC, and their advisers on Thursday down at Reading. I take our offer, and this begins the negotiation. An hour later we have a deal. I thought it would take a lot longer!
I spoke too soon! We get back to the Primus office in Moorgate to find the administrator wants different terms. Three days later we have a deal and I transfer payment to PwC’s bank account.
Having acquired the Rok London and South East business, now the fun starts. It’s a shot gun start. We now have to get around as many clients and their consultants as we can so we split into teams.
After three days I don’t know whether I’m punch drunk or countersunk and all the conversations and meetings running in parallel takes multi-tasking to a new level! Names and projects are all beginning to morph into one! Neil and I take time out to clear our heads and bring the stress levels down to somewhere near normal.
The meetings are going extremely well regarding novations until we wake up to find the country blanketed in snow. Chaos on the roads, Rok staff snowed in, meetings cancelled….
At least it gives me a chance to get back to the day job. By the first week in December we are back in business – the roads are passable, although the rail companies are doing their best to prevent us getting to meetings.
By 8 December we have sufficient confidence in the conversations with the various clients and with the surety providers to start interviewing all existing Rok staff. We need to fit revolving doors on the office at Moorgate as Rok people arrive thick and fast.
All the offers of employment are out the door by Christmas. The girls in the office work flat out to get all the paperwork together and out to the ex-Rok team. Nice to think these guys will now be able to enjoy Christmas knowing they have jobs in the New Year.
We break for Christmas and it was good to recharge the batteries as we know January is going to be busy.
Sure enough sale documents signed, novations for contracts are in place and we pick up the Rok contracts where they were left off on the 8th November. So far so good.
Exciting times and I’m away now to look for the next deal!
