The initial consideration for the acquisition is £22.5m satisfied as to £2.25m in Rok shares with the balance payable in cash on completion. The initial cash consideration of £20.25m is being funded from existing bank facilities.

In addition, deferred consideration of up to £18m is payable in respect of free cash retained in the business at completion and net cash generated over the next two years from sales of the private housing assets.

Richardson was founded in 1983 and operates across the North of England covering Greater Manchester, Lancashire, Cheshire, Merseyside, North Derbyshire and Yorkshire.

The business specialises in the provision of new build and refurbishment services to the social housing sector principally under a number of long term framework agreements. Richardson has offices in Rochdale and Leeds and employs over 350 staff.

Founder and Chairman Alan Richardson will be remaining with the business for a minimum period of six months to oversee the transition into Rok.

In the year ended 31 August 2007 Richardson reported pre-tax profits of £4.2m, of which £0.6m related to the private housing development division. Gross assets at that date were £24.2m of which £11.5m related to the private housing development division.

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