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Alfred McAlpine

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For other people named Alfred McAlpine, see Alfred McAlpine (disambiguation).

Alfred McAlpine
Company typePublic
IndustryConstruction
Business services
Founded1935[1]
Defunct2008
FateAcquired
SuccessorCarillion
HeadquartersHooton, Cheshire
Key people
Dr Roger Urwin, (Chairman)
Ian Grice, (CEO)
Number of 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

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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.[1] 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][21] Several former managers later admitted to charges of fraud related to this incident.[22] It was speculated that Alfred McAlpine may have to part with its slate activities entirely.[23]

During October 2007, reports emerged that two takeover bids made by rival company Carillion had been rejected by Alfred McAlpine.[24][25] 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.[26][27] 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.[28][29]

Structure

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It had three business streams:

  • Business Services: facilities management, information systems, asset management and health and safety management.
  • Project Services: the Special Projects unit was involved a broad range of commercial, industrial, leisure, educational and medical facilities and the civil engineering unit was focused primarily on road building.
  • Infrastructure Services: maintenance, renewal and development services to utility operators in the gas, electricity, water and telecoms sectors and roads maintenance services to local government.

It also owned Alfred McAlpine Slate, which was the world's largest producer of natural slate.[20]

Major projects

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Projects undertaken by the company included:

References

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Citations

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  1. ^ a b ""McAlpine vs McAlpine" High Court Judgement". Her Majesty's Courts Service. 31 March 2004. Archived from the original on 17 May 2006. Retrieved 11 July 2008.
  2. ^ Gray 1987, pp. 23-25.
  3. ^ Milner, Mark (3 March 2004). "What's in a name, court asks in McAlpine dynasty case". The Guardian.
  4. ^ Gray 1987, pp. 68-69.
  5. ^ Rogers, David (11 March 2004). "The McAlpine family at war". constructionnews.co.uk.
  6. ^ Demetriou, Danielle (23 December 2003). "McAlpines in bitter dispute over rival's use of family name". The Independent.
  7. ^ Goulden, Eric (September 1992). "Slate waste aggregate for unbound pavement layers" (PDF). nottingham.ac.uk.
  8. ^ Mylius, Andrew (2 May 2002). "Alfred McAlpine to use slate waste as road sub-base". New Civil Engineer.
  9. ^ a b Wellings, Fred: Dictionary of British Housebuilders (2006) Troubador. ISBN 978-0-9552965-0-5,
  10. ^ "Sir Alfred McAlpine and Son". Graces Guide. Retrieved 10 November 2012.
  11. ^ Morby, Aaron (1 May 1997). "Contractor has Hassall Homes landbank in its sights in takeover talks Alfred McAlpine is preying for Raine". constructionnews.co.uk.
  12. ^ Hotten, Russell (20 December 1995). "Amec to seek new talks". The Independent.
  13. ^ "Engineer rejects 100p-a-share bid before having its own offer turned down by McAlpine. Amec rebuffs Kvaerner move". Herald and Times. 28 November 1995.
  14. ^ "Wimpey buys McAlpine building unit". BBC News. 14 August 2001. Retrieved 11 July 2008.
  15. ^ "Wimpey Homes in McAlpine takeover". The Guardian. 14 August 2001.
  16. ^ "Alfred McAlpine". UK Business Park. 21 March 2001. Archived from the original on 2 October 2008. Retrieved 11 July 2008. Alfred McAlpine has acquired Kennedy, the Manchester-based construction services group, for £52m.
  17. ^ "Alfred McAlpine". UK Business Park. 4 March 2002. Archived from the original on 2 October 2008. Retrieved 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.
  18. ^ "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.
  19. ^ "Interview: Alfred McAlpine Business Services MD, CraigMcGilvray, talks to Jane Fenwick about recent successes and future prospects". Premises and Facility Management. 15 May 2006.
  20. ^ a b Hoyle, Rhiannon (24 September 2009). "The massive fraud at Welsh Slate". constructionnews.co.uk.
  21. ^ Walsh, Fiona (27 February 2007). "McAlpine hit by accounting black hole at Welsh slate quarry". The Guardian.
  22. ^ "Two slate directors admit fraud". BBC News. 8 May 2009.
  23. ^ "Multi-million fraud could mean sell-off of McAlpine slate". dailypost.co.uk. 9 July 2007.
  24. ^ Macalister, Terry (17 October 2007). "Alfred McAlpine rejects two overtures from Carillion". The Guardian.
  25. ^ "McAlpine rejects £584m takeover approach". WalesOnline. 17 October 2007.
  26. ^ "Carillion agrees to buy McAlpine". BBC News. 10 December 2007. Retrieved 11 July 2008.
  27. ^ Milmo, Dan (10 December 2007). "Alfred McAlpine agrees reduced takeover offer". The Guardian.
  28. ^ Bill, Tom (19 December 2008). "Carillion calls off £20m sale of Alfred McAlpine division". building.co.uk.
  29. ^ "Carillion profit up on Alfred McAlpine acquisition". Reuters. 28 August 2008.
  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. ^ "Jackfield Bridge" (PDF). Tata Steel.
  39. ^ "The Re-negotiation of the PFI-type deal for the Royal Armouries Museum in Leeds" (PDF). National Audit Office. 18 January 2001. p. 17. Archived from the original (PDF) on 30 October 2008. Retrieved 11 July 2008.
  40. ^ "Galpharm Stadium". Engineering Timelines. Archived from the original on 10 July 2011.
  41. ^ "Facts and Figures". The JJB Stadium. Archived from the original on 28 March 2008. Retrieved 11 July 2008.
  42. ^ "Welcome to Living Space – Housing Regeneration". living-places.org.uk. Archived from the original on 2 April 2015. Retrieved 15 March 2015.
  43. ^ "£113M Wythenshawe Hospital development". New Civil Engineer. 20 August 1998. Archived from the original on 8 April 2018. Retrieved 7 April 2018.
  44. ^ "Hereford PFI deal closed". Building. 23 April 1999. Retrieved 1 April 2018.
  45. ^ "M6 Toll (formerly Birmingham Northern Relief Road)". The Motorway Archive. Archived from the original on 8 August 2008. Retrieved 11 July 2008.
  46. ^ "HICL announces additional investments in 4 existing projects". InfraRed. 6 August 2012. Archived from the original on 2 April 2018. Retrieved 2 April 2018.
  47. ^ "Clinical and research centre reaches milestone". University of Cambridge. 7 November 2005. Retrieved 8 February 2018.
  48. ^ "The lessons of Bluestone" (PDF). Archived from the original (PDF) on 4 March 2016. Retrieved 5 June 2012.

Sources

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  • Gray, Tony (1987). The Road to Success: Alfred McAlpine 1935–1985. Rainbird Publishing.
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