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John Laing Group

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John Laing Group plc
FormerlyJohn Laing & Sons
Company typeSubsidiary
LSE: JLG
IndustryInfrastructure
Founded1848; 176 years ago (1848)
HeadquartersLondon, England
Key people
Will Samuel (Chairman)
Olivier Brousse, (CEO)
RevenueDecrease £25 million (2020)[1]
Decrease £−53 million (2020)[1]
Decrease £−66 million (2020)[1]
ParentKKR
Websitewww.laing.com

John Laing Group plc is a British investor, developer and operator of privately financed, public sector infrastructure projects such as roads, railways, hospitals and schools through public-private partnership (PPP) and private finance initiative (PFI) arrangements. It was listed on the London Stock Exchange and was a constituent of the FTSE 250 Index prior to its acquisition by KKR.

The company has its origins in 1848, when James Laing and his wife Ann Graham embarked on a home construction venture in Cumberland before relocating to Carlisle. James' son, John Laing, took over the company and pursued larger contracts in the region. By 1920, John William Laing had taken charge and continued to expand the business; it became a limited company in 1920 and established its headquarters at Mill Hill, London two years later. Its activities during and after World War II, particularly in the reconstruction efforts, increased the company's prominence. In January 1953, John Laing & Sons was listed on the London Stock Exchange, at which point the business had roughly 10,000 employees. William Kirby Laing and John Maurice Laing, who had joined the company in 1950, jointly took over in 1957.

During the latter half of the twentieth century, the company diversified into road construction and built numerous power stations as well as continuing to construct houses. In 1985, Martin Laing became the chairman and pursued further diversification; shortly thereafter, its home construction grew internationally, particularly in the Middle East, Continental Europe, and the United States. While the late 1990s was a time of rapid expansion for the business expanded rapidly, profitability suffered, leading to job losses and the disposal of its construction division to O'Rourke for £1 in 2001 while the property developments divisions were sold to Kier Group and its house building arm was also divested to George Wimpey during the following year. In place of construction, John Laing Group focused on PPP / PFI opportunities.

In December 2006, John Laing plc was acquired by the private equity arm of Henderson Group. A year later, the Laing Rail division, which had shareholdings in Chiltern Railways, London Overground Rail Operations and Wrexham & Shropshire, was sold to Deutsche Bahn. John Laing was part of the Agility Trains consortium that was awarded the Intercity Express Programme contract in 2012. In October 2013, the company sold its facilities management business to Carillion. The John Laing Environmental Fund was established in 2014. During February 2015, the company was listed on the London Stock Exchange again. In September 2021, KKR completed the acquisition of John Laing Group.

History

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The business can trace its roots back to 1848 when James Laing (born in 1816), along with his wife Ann Graham, and some employees whom they had hired, built a house on a plot of land that they had bought for £30 in Cumberland. The £150 proceeds from the first house financed the building of the next two houses on the same plot of land, one of which (Caldew House in Sebergham)[2] was kept by the Laing family to live in. Both the family and the business later moved near Carlisle.[3]

When James Laing died in 1882, his son, John Laing (born in 1842) took over the running of the company.[4] John began to undertake larger contracts, but opted to confine the business' activities to the Carlisle area.[3] John's son, John William Laing, (born in 1879) was working for the business before he was 20 years old, and so it became John Laing & Son. By 1910, John William Laing was running the business. More employees were recruited and larger projects were undertaken, including factory construction.[3] During 1920, the firm became a limited company, and two years later moved its headquarters to a 13 acres (5.3 ha) site at Mill Hill in north-west London.[3] During World War II, the company was one of the contractors involved in building the Mulberry harbour units.[5] Its activities during the conflict, as well in the immediate years of reconstruction following it, greatly bolstered the company's reputation.[4]

During 1950, William Kirby Laing and John Maurice Laing, the fifth generation of the founding family, joined the company.[3] John Laing & Sons was listed for the first time on the London Stock Exchange in January 1953;[6] at the time, the Laing family along with its trusts and charities held the majority of the shares. John William Laing became the chairman while his sons became joint managing directors. By this time, the number of employees was around 10,000, and every site had a quality supervisor. John William Laing retired in 1957. During 1964, the company acquired the rival civil engineering business Holloway Brothers.[7]

The Second Severn Crossing built by John Laing

Under William Kirby Laing and John Maurice Laing, the company continued to expand, winning contracts for power stations and diversifying into road construction while continuing to build houses. In 1985, Martin Laing, of the sixth generation of the founding family, became chairman.[8] Martin Laing determined that the company should begin to diversify. Home construction in the United Kingdom, Saudi Arabia, Oman, the United Arab Emirates, Iraq, Spain, and California was now one of the major sources of the company's growth.[9] During 1969, the company opted to invest in a toll road in Spain, marking its first infrastructure investment in 1969 in a toll road in Spain (the 65km Europistas project). Another milestone was attained in 1990 in the construction of the Second Severn Crossing, which was the first PPP to be conducted by John Laing.[10]

During June 1995, amid the privatisation of British Rail, John Laing backed a management buyout that was the Chiltern Railways franchise.[11] In early 1999, a controlling interest in Chiltern Railways was purchased.[12][13]

The Millennium Stadium, built by John Laing

During the late 1990s, the business expanded rapidly, to the extent that, for the year ended 31 December 2001, its turnover was in excess of £1 billion. However, as the company celebrated its 150th anniversary in 1998, it faced falling profits following significant losses on certain construction contracts (including the Cardiff Millennium Stadium, the National Physical Laboratory, a disastrous PFI scheme in Teddington, west London, and No 1 Poultry in the City of London),[4] and sustained problems within its construction division related to competition and overcapacity.[9] Accordingly, in 2001, the company cut 800 jobs,[14] and disposed of its construction division to O'Rourke for £1, far less than the roughly £100 million that had been anticipated.[4][15] Shortly thereafter, Sir Martin Laing stepped down as executive chairman in favour of Bill Forrester.[16][4]

The business became orientated itself around its PPP / PFI activities;[17] by 2002, it had structured itself into two main divisions, namely Homes and Investments.[16] In April 2002, Laing's property developments divisions were sold to Kier Group,[18] and its house building arm was also sold to George Wimpey later that same year.[19] During 2003, its affordable housing division was sold via a management buy-out.[20]

In December 2006, John Laing plc was acquired by the private equity arm of Henderson Group.[21] During June 2007, a 50:50 joint venture between Laing Rail and MTR Corporation, London Overground Rail Operations, was awarded the London Overground concession.[22][23] Several months later, the Laing Rail division, which by then operated Chiltern Railways and (jointly) London Overground, as well as held a stake in Wrexham & Shropshire, was put up for sale;[24][25] the division was purchased by German rail operator Deutsche Bahn in January 2008.[26][27]

In June 2008, John Laing in a joint venture with Hitachi and Barclays Private Equity formed Agility Trains to bid for the contract to design, manufacture, and maintenance of a fleet of long-distance trains for the Intercity Express Programme.[28] The bid was successful, leading to a £4.5bn contract for new trains for both Greater Western and InterCity East Coast franchises being finalised in mid 2012.[29][30] The company established the John Laing Infrastructure Fund in 2010 in a £270 million public launch; this entity focuses on the day-to-day operations of completed infrastructure.[31][32] During October 2013, the company sold its facilities management business to Carillion.[33]

In March 2014, Olivier Brousse was appointed as Chief Executive; he avidly pursued further PPPs for infrastructure delivery and management services.[31] The John Laing Environmental Fund was established in 2014 in a £174 million public launch.[34] In February 2015, the company became listed on the London Stock Exchange again.[10]

During September 2018, John Laing sold John Laing Infrastructure Fund Ltd. to Dalmore Capital and Equitix Investment Management.[35] In June 2019, John Laing sold the Investment Advisory Agreement between John Laing Capital Management Ltd. and John Laing Environmental Fund Ltd. to Foresight Group CI Ltd.[35]

In May 2021, KKR announced that it has agreed terms to purchase John Laing Group in a deal valued at about £2 billion. John Laing confirmed that it would unanimously recommend that its shareholders back the deal and that it considered the terms of the acquisition to be fair and reasonable.[4][36] In September 2021 the transaction was completed.[37]

Significant investments

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Significant investments include:

Former operations

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Laing Construction

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John Laing’s former construction division, now absorbed into Laing O'Rourke, undertook a number of landmark projects including:

Laing Rail

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The subsidiary Laing Rail owned and operated Chiltern Railways and was joint operator of London Overground (with MTR Corporation) and Wrexham & Shropshire (with Renaissance Trains). In 2008, Laing Rail was sold to Deutsche Bahn.[26]

Musical reference

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Along with Sir Robert McAlpine and George Wimpey, Laing is mentioned in the opening preamble to the 1960 Dominic Behan satirical Irish ballard McAlpine's Fusiliers.[76]

References

[edit]
  1. ^ a b c "Preliminary Results 2020" (PDF). John Laing Group. Retrieved 4 March 2021.
  2. ^ Ritchie 1997, p. 15.
  3. ^ a b c d e "Cumbrian roots for flotation firm". Cumberland Echo. 19 January 2015. Archived from the original on 10 February 2015. Retrieved 9 February 2015.
  4. ^ a b c d e f g Rogers, Dave (5 January 2024). "Sir Martin Laing dies aged 81". building.co.uk. Retrieved 5 January 2024.
  5. ^ Hartcup 2011, p. 94.
  6. ^ Ritchie 1997, p. 119.
  7. ^ Ritchie 1997, p. 145.
  8. ^ "Birthdays". The Times. 18 January 2008. Archived from the original on June 29, 2011. Retrieved 9 February 2015.
  9. ^ a b c "Cardiff stadium 'financial disaster'". BBC News. 9 September 1999. Retrieved 9 February 2015.
  10. ^ a b "John Laing building group to list on stock market". BBC News. 19 January 2015. Retrieved 9 February 2015.
  11. ^ Stokdyk, John (14 April 1999). "Full steam ahead". Accountancy Age.
  12. ^ "Green light for Laing rail stake". The Independent. 10 March 1999. Archived from the original on 13 June 2022. Retrieved 9 February 2015.
  13. ^ Stokdyk, John (1 March 1999). "Fat cat row in Chiltern bid". Accountancy Age.
  14. ^ "Laing axes jobs after stadium loss". BBC News. 27 October 1999. Retrieved 9 February 2015.
  15. ^ "Laing shares halve in value". BBC News. 21 September 2001. Retrieved 9 February 2015.
  16. ^ a b "Forrester steps in to give Laing a shake-up". The Daily Telegraph. 15 December 2001.
  17. ^ "Laing focuses on PFI as losses cut to £18.6m". The Scotsman. 18 March 2003. Retrieved 9 February 2015.
  18. ^ "Kier snaps up Laing Property". Property Week. 15 April 2002. Retrieved 9 February 2015.
  19. ^ "Wimpey moves in on Laing Homes". The Guardian. 17 October 2002.
  20. ^ "Northern Venture backs John Laing MBO". Financial News. 28 September 2003. Archived from the original on 29 March 2015. Retrieved 9 February 2015.
  21. ^ "Henderson beats Allianz to John Laing". The Guardian. 16 November 2006. Retrieved 9 February 2015.
  22. ^ "Milestone reached in transformation of London's overland rail network as operator is announced" (Press release). Greater London Authority. 19 June 2007. Archived from the original on 6 May 2012. Retrieved 9 December 2012.
  23. ^ "MTR Laing beats Go-Ahead unit Govia to win North London rail franchise". London South East. Thomson Financial. 19 June 2007.
  24. ^ "Chiltern Railways auction attracts strong interest". Reuters. 17 September 2007. Archived from the original on February 1, 2013. Retrieved 9 February 2015.
  25. ^ "Chiltern Railways is on the market". Railnews. Stevenage. 31 July 2007. Archived from the original on 8 November 2007. Retrieved 10 September 2007.
  26. ^ a b "Deutsche Bahn buys Laing Rail". Financial Times. 21 January 2008. Retrieved 9 February 2015.
  27. ^ "Deutsche Bahn announces acquisition of Laing Rail" (Press release). Chiltern Railways. 21 January 2008. Archived from the original on 13 May 2008. Retrieved 22 January 2008.
  28. ^ a b "New train fleet 'to boost jobs'". BBC News. 12 February 2009. Retrieved 12 February 2009.
  29. ^ "Agility Trains signs Intercity Express Programme contract". Railway Gazette International. London. 25 July 2012.
  30. ^ Odell, Mark; Pickard, Jim (25 July 2012). "Hitachi secures largest UK train order". Financial Times. London.
  31. ^ a b Tovey, Alan (30 August 2015). "Olivier Brousse: Using his 'Coca-Cola secret recipe' to solve infrastructure problems". The Telegraph. Retrieved 15 January 2016.
  32. ^ "John Laing to launch £270m infrastructure fund". building.co.uk. 14 October 2010. Retrieved 9 February 2015.
  33. ^ "Carillion buys John Laing's FM business". building.co.uk. 21 October 2013. Retrieved 9 February 2015.
  34. ^ Francavilla, Chiara (11 February 2014). "John Laing backed infrastructure fund targets £174m launch". Materials Recycling World. Retrieved 9 February 2015.
  35. ^ a b "Fund consortium to buy John Laing Infrastructure for $1.8 billion". Reuters. 3 August 2018. Archived from the original on August 1, 2019. Retrieved 1 August 2019.
  36. ^ "KKR to Buy Infrastructure Group John Laing for $2.8 Billion". Bloomberg. 19 May 2021. Retrieved 19 May 2021.
  37. ^ "Court sanctions KKR's takeover of John Laing Group". 21 September 2021. Retrieved 21 September 2021.
  38. ^ "John Laing sells Intercity Express Programme stake". Railway Gazette International. 19 March 2018.
  39. ^ "Greater Manchester Waste PFI deal completed with Treasury cash". New Civil Engineer. 9 April 2009. Retrieved 10 February 2015.
  40. ^ "John Laing plc enters Australian PPP market". International Project Finance Association. 16 December 2010. Archived from the original on 11 February 2015. Retrieved 10 February 2015.
  41. ^ "A1 Gdañsk to Toruñ motorway, Poland". roadtraffic-technology.com. Retrieved 10 February 2015.
  42. ^ Bottom, Hannah (16 August 2010). "Balfour Beatty to proceed on Denver's Eagle P3 commuter rail project". New Civil Engineer. Retrieved 10 February 2015.
  43. ^ Ritchie 1997, p. 26.
  44. ^ Ritchie 1997, p. 57.
  45. ^ Ritchie 1997, p. 85.
  46. ^ Ritchie 1997, p. 78.
  47. ^ Ritchie 1997, p. 112.
  48. ^ Ritchie 1997, p. 126.
  49. ^ a b Ritchie 1997, p. 129.
  50. ^ "M1 London - Yorkshire Motorway, M10 and M45". Motorway archive. Archived from the original on 4 November 2002. Retrieved 9 February 2015.
  51. ^ "Coventry Cathedral (1962)". British Film Institute. Archived from the original on 10 February 2015. Retrieved 9 February 2015.
  52. ^ Ritchie 1997, p. 139.
  53. ^ Richardson, Michael (2009). Durham City Through Time. Amberley Publishing. ISBN 978-1848685192.
  54. ^ Ritchie 1997, p. 140.
  55. ^ "Carlisle Civic Centre". skyscrapernews.com. Retrieved 5 July 2020.
  56. ^ Historic Environment Scotland. "Almada Street, Lanark County Buildings (Category A Listed Building) (LB34472)". Retrieved 11 November 2021.
  57. ^ Ritchie 1997, p. 141.
  58. ^ "Apostle Room Refurbishment". Clifton Cathedral. Archived from the original on 10 February 2015. Retrieved 9 February 2015.
  59. ^ Ritchie 1997, p. 147.
  60. ^ Ritchie 1997, p. 155.
  61. ^ Ross, Peter (1 December 1978). "Freeman Hospital, Newcastle-upon-Tyne" (PDF). Arup Journal. p. 21. Archived from the original (PDF) on 14 January 2018. Retrieved 13 January 2018.
  62. ^ Ritchie 1997, p. 166.
  63. ^ "About the Falklands". Ministry of Defence. Retrieved 4 June 2012.
  64. ^ Ritchie 1997, p. 174.
  65. ^ "An exterior view of the recently completed Newcastle Law Courts from north-west on Broad Chare". Historic England. Retrieved 22 January 2023.
  66. ^ Ritchie 1997, p. 173.
  67. ^ "Teesside Law Courts". Napper Architects. Retrieved 28 January 2023.
  68. ^ "Bradford Law Courts". Napper Architects. Retrieved 28 January 2023.
  69. ^ "Sizewell B Nuclear Reactor". Engineering Timelines. Retrieved 9 February 2015.
  70. ^ "The Law Courts". Sheffielder.net. 3 August 2021. Retrieved 26 January 2023.
  71. ^ "Second Severn Crossing". Parliamentary Debates (Hansard). 19 April 1990. Retrieved 9 February 2015.
  72. ^ Ritchie 1997, p. 180.
  73. ^ Ritchie 1997, p. 188.
  74. ^ "MoD college deal 'will save £55m'". Oxford Mail. 16 June 1998. Retrieved 4 August 2024.
  75. ^ "Huge windfall for hospital's PFI investors as staff face job cuts". The Guardian. 3 May 2006. Retrieved 9 February 2015.
  76. ^ "McAlpines Fusiliers". Let's Sing It. Retrieved 9 February 2015.

Sources

[edit]
  • Hartcup, Guy (2011). Code Name Mulberry: The Planning Building and Operation of the Normandy Harbours. Pen & Sword Military. ISBN 978-1848845589.
  • Ritchie, Berry (1997). The Good Builder: The John Laing Story. James & James.
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