Mon, 20 Aug 2018 | MERGER
Two of Cumbria’s largest housing associations have now come under one name after completing a merger that followed a legal proceeding agreed upon by both boards.
Impact Housing has now become a subsidiary of Riverside in an attempt to make the business a more viable one. In return, Riverside has vowed to invest £25 million in Impact’s business to improve its 2,770 houses in Lancashire and Cumbria.
Due to growing financial strains placed on Impact as a result of government-imposed rent cuts and the Storm Desmond floods in 2015, the company has since footed an expensive bill of roughly £6 million.
The decision to merge is a longstanding one, with Impact beginning talks with Riverside in January 2018 itself. Impact later faced a tremendous push to become a subsidiary of Riverside in June, which resulted in the merger.
The interim managing direct of Impact, Bryonie Shaw said: “The announcement is the result of almost a year of very intensive work to seek a strong partner that will secure Impact’s future and win the support of our tenants, shareholders and local partners in our joint plans.
“I’m really thrilled that we are now in a position to make a real difference to our customers’ homes and lives whilst revitalising our development programme of new affordable homes within the region.”
All tenants have been guaranteed that no rent increases will follow the merger, and all of Impact’s employees have been assured that their jobs will be secure at least until 2020.
The merger will also offer Riverside the chance to support Impact’s successful community projects such as the Oval Centre in Workington, and the furniture resource centres in Carlisle and Barrow.
Riverside’s group chief executive, Carol Matthews said: “Our priority is now to begin delivering the promises in our partnership pledge with a clear focus on strengthening Impact’s financial position and governance arrangements.
“Over the next two to three years we will be looking to re-ignite Impact’s development programme and begin exploring the potential to bring our two organisations’ operations closer together across the region.”
For more news stories about mergers, click here.
For all our business for sale listings, click here.
Has extensive in-house expertise and relationships with a range of specialist subcontractors. Second-tier management team in place who can run the company on the day-to-day operations. Has obtained several awards due to its superior service offering....
LEASEHOLD
YE19 turnover of £909k with an adjusted EBITDA of £137k. YE20 outturn turnover of £754k. Established for over 30 years. Specialises in the design and installation of a range of electronic systems including CCTV, intruder alarms, building automation s...
LEASEHOLD
Independent supplier of leading brand office copiers and printers to businesses throughout the UK focused within the North East.
|
23
|
|
Sep
|
Cartwright Group enters administration, but fleet and rental arms are sold | ADMINISTRATION
Commercial trailer manufacturer and rentals firm Cartwright ...
|
22
|
|
Sep
|
Macbryde Homes bought by managing director and finance partner | MBO/MBI
Welsh home construction firm Macbryde Homes has been sold to...
|
21
|
|
Sep
|
Aldo UK acquired out of administration by investment firm | BUSINESS SALE
The UK arm of shoe retailer Aldo has been acquired by Birmin...
Sign up to receive our acquisition alert emails to get your FREE guide
|
20
|
|
Mar
|
Lake District hotel for sale | COMMERCIAL PROPERTY
The Best Western Burnside Hotel and Parkside Country Club in...
|
10
|
|
Feb
|
Riverside Automation engineering firm undertakes MBO | MBO/MBI
Engineering business Riverside Automation has been purchased...
|
12
|
|
Mar
|
Two Lake District hotels with for sale signs | ADMINISTRATION
Two hotels in the Lake District have been put up for sale af...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources