Trafalgar House (company)
Kvaerner | |
Headquarters | London, England |
---|---|
Key people | Sir Nigel Broackes (Chairman) |
Trafalgar House was a British
The entrepreneur Nigel Broackes, who would be the chairman of Trafalgar House throughout much of its existence, played a key role in the company's emergence during the late 1950s and early 1960s. Broackes worked with the Eastern International Investment Trust and Commercial Union to build a portfolio of assets that would be the initial footings of the company. Shortly after its floatation during 1963, Trafalgar House leveraged the issuing of shares to fuel its acquisition of various other businesses, which included The Cementation Company, John Brown Engineering, Cleveland Bridge, Redpath Dorman Long, Ideal Homes, Comben Homes, Broseley Homes, Cunard, British Rail Engineering Limited, and Express Newspapers.
Trafalgar's growth strategy consisted of direct investments and acquisitions continued throughout the 1970s and 1980s. However, its decision to continue making heavy investments on the runup to the
History
The origins of Trafalgar House are closely linked with the activities of Nigel Broackes, an entrepreneur whose interests in share dealing and small scale property development brought him into contact with the directors of the Eastern International Investment Trust, a small trust quoted on the London Stock Exchange.[2][3] During 1959, Broackes acquired a 42 per cent holding in Eastern's property subsidiary, Eastern International Property Investments (EIPI). Two years later, Broackes formed a relationship with Commercial Union, which also bought shares in EIPI and prepared to act as a financial backer for new property developments. Almost immediately, EIPI bought a 55 per cent stake in CU's residential property subsidiary Westminster & Kensington Freeholds, thereby acquiring control of a property portfolio of £3.3 million for an equity cost of only £550.[4]
During 1963, Trafalgar House was floated on the London Stock Exchange, at which point Commercial Union owned 46 per cent of the business while Broackes held a 21 per cent stake.[3] The existence of a public quotation enabled Trafalgar House to issue shares for acquisition, a facility that Broackes made extensive use for the company to become a formidable international industrial and commercial undertaking.[4] Both acquisitions and direct investments were primary vehicles used for growth; typical targets of attention were businesses operating in the construction and engineering sectors.[3] These would form a corporate group, the creation and performance of which was largely attributed to Broackes, who gained a reputation as a particularly successful financier.[5]
An acquisition with significant long term consequences for the company was a 49% share of Bridge Walker in 1964 (increased to full ownership in 1967).
Trafalgar House continued to expand across a period of 20 years, during which time acquisitions played a major role. In the construction and engineering sector, these included The Cementation Company, John Brown Engineering, Cleveland Bridge and Redpath Dorman Long. Housebuilding saw the acquisition of two top ten housebuilders, Comben Homes and Broseley Homes.[7] Trafalgar’s property development had led to the purchase of hotels but the high-profile acquisition was of the Ritz Hotel in 1976. Trafalgar also entered fields that were far removed from its original property development and construction roots with the purchase of Cunard in 1971 and Beaverbrook's Express Newspapers in 1976.[4][8] Matthews' attentions were largely focussed on Express and this was floated as a separate entity in 1982 with Matthews as chairman.[2]
In the course of thirty years or so, Trafalgar House became a formidable international industrial and commercial undertaking. During the final few years of its existence, it was consistently tabled as the largest
Divisions or operating areas
A conglomerate by nature is usually a dynamic entity and fluid in its structure and content. For the purpose of this historical perspective, a general indication only is given of the scope of industries, operations and companies embraced by Trafalgar House during its existence.[9]
Hotels
The Ritz Hotel in London was acquired by Trafalgar House in 1976. It was subsequently sold to
Property
In 1980, there was public outcry at the sudden destruction by Trafalgar House of the
During 1988, Trafalgar House was involved in a joint development with
In 1995, it bought the bomb-damaged site of the historic
Housebuilding
Trafalgar bought
Shipping
Trafalgar House acquired the Cunard group of shipping and leisure companies in 1971.[9] At the time of the acquisition, Cunard operated cargo and passenger ships, hotels and resorts; its fleet comprised forty-two active cargo ships, with fourteen more under construction, as well as three passenger ships, with two more under construction. But, twelve years later, the cargo fleet had shrunk to eighteen, half of which were by then container ships, while the size of the passenger fleet had remained constant.[9]
![](http://upload.wikimedia.org/wikipedia/commons/thumb/a/a5/Vasco_de_Gama_bridge_side.jpg/220px-Vasco_de_Gama_bridge_side.jpg)
THC were appointed head of the construction consortium in 1995 and were awarded twenty-six percent of the work on this 17 kilometre elevated roadway structure.
Construction
In 1964, Trafalgar House bought 49 percent of Bridge Walker (increased to full ownership in 1967). At the end of the following year it bought Trollope & Colls. From then on the prime umbrella operating division, in terms of turnover and revenue, was Trafalgar House Construction; generally referred to both inside the company and within the industry as 'THC'. As the division grew in scope and stature it was responsible for more and more large international projects.[1][3]
Engineering
In 1986, Trafalgar House acquired John Brown Engineering, which built industrial gas turbines and also implemented licensed processes, such as the Union Carbide Corporation Polyethylene Plant. The basic processes were engineered to fit the purchaser's requirements, including the site plan, the production capacity, the raw material feedstock, and other constraints.[21][22]
During 1989, Trafalgar House purchased a 40% shareholding in British Rail Engineering Limited (BREL).[23][24] Three years later, the stake in BREL was sold to fellow shareholder Asea Brown Boveri.[25][26]
In 1992, Trafalgar House acquired the Davy Corporation, a group of international engineering companies which also included a well-established UK wide construction division, in exchange for £114 million.[27][28]
Decline and disposal
As the
Trafalgar's far-east associates,
On 18 April 1996, Norwegian shipbuilding and engineering group Kværner acquired Trafalgar House following a £904 million offer. The acquisition provided Kvaerner with a broad-based portfolio of companies with 34,000 staff.[35][36] During the late 1990s and into the early 2000s, Kvaerner elected to divest itself of numerous divisions that it had acquired through its purchase of Trafalgar.[37][38][39]
References
- ^ a b c "UK Building's decline and fall". Management Today. 1 February 1996. Retrieved 23 October 2019.
- ^ ISBN 978-0-19-861412-8. (Subscription or UK public library membershiprequired.)
- ^ a b c d e "Chapter Two: Trafalgar House Public Limited Company" (PDF). Competition Commission. 1984. Archived from the original (PDF) on 25 October 2007.
- ^ ISBN 0297776541. [page needed]
- ^ "Obituary". Daily Telegraph. 1 October 1999.
- ^ "Plans for Nigel". architectsjournal.co.uk. 7 October 1999.
- ^ ISBN 978-0-9552965-0-5.
- ^ "How Trafalgar won the Express". Private Eye. 6 July 1979.
- ^ a b c Monopolies and Mergers Commission (1984). "Appendix 3: Trafalgar House plc: composition of fleet in 1971 and 1983". Trafalgar House plc & Peninsular and Oriental Steam Navigation Company: A report on the proposed merger (PDF). pp. 77–79. Archived from the original (PDF) on 25 October 2007. Retrieved 17 February 2010.
- City AM. 10 October 2019. Retrieved 23 October 2019.
- ^ Stevenson, Tom (6 October 1995). "Ailing Trafalgar sells the Ritz". The Independent.
- ^ Hillier, Bevis. "1928: Firestone Factory, Brentford". c20society.org.uk. Retrieved 14 June 2024.
- Richmond & Twickenham Times. 1 September 2005. Retrieved 23 October 2019.
- ^ MacCarthy, Fiona (20 November 2004). "Grand designs | Art and design". The Guardian. Retrieved 17 October 2013.
- ^ "Out of Ordnance". enfielddispatch.co.uk. 16 September 2019.
- ^ "Panorama transcript". BBC. Retrieved 16 April 2011.
- ^ "History – 1949-Today". Baltic Exchange. Archived from the original on 1 August 2010. Retrieved 4 February 2010.
- ^ "'Gherkin' challenger gives way". The Telegraph. 14 October 2000. Retrieved 16 January 2016.
- ^ Fishlock, Bill (18 January 1996). "Beazer, Redrow plan fresh bid for Ideal". constructionnews.co.uk.
- ^ Hellier, David (13 January 1996). "Beazer cries 'foul' over Trafalgar's Ideal sale". The Independent.
- ^ "John Brown plc". referenceforbusiness.com. Retrieved 14 June 2024.
- ^ "John Brown being Sold". chicagotribune.com. 8 May 1986.
- JSTOR 24438307.
- ^ "Buyer for BREL". The Railway Magazine. No. 1055. March 1989. p. 143.
- ^ "ABB to control BREL". The Railway Magazine. No. 1083. May 1992. p. 7.
- Rail Magazine. No. 183. 16 September 1992. p. 5.
- ^ "Company News: Davy to Merge With Trafalgar". Reuters. 26 June 1991.
- ^ "Davy Process Technology". Archived from the original on 23 October 2007.
- ^ Elliot, B.; Elliot (2008). Financial Accounting and Reporting 12th Edition. Prentice Hall. pp. 114–115.
- ^ "Trafalgar chief is expected to give up post". heraldscotland.com. 11 October 1993.
- ^ Warner, Jeremy (11 April 1993). "Keswick Coup". The Independent. Retrieved 23 October 2019.
- ^ "Vital link for Trafalgar". South Chine Morning Post. 25 July 1993.
- ^ Stevenson, Tom (19 October 1995). "Taipans with egg on their faces". The Independent.
- ^ Vines, Stephen (27 January 2007). "Secrets of survival in the Noble House". The Spectator.
- ^ "Kvaerner Is Close to Bidding for Troubled Group: Lifeline for Trafalgar House?". International Herald Tribune. 28 February 1996.
- ^ Hotten, Russell (5 March 1996). "Kvaerner buys Trafalgar for pounds 904m deal". The Independent.
- ^ Macalister, Terry (14 April 1999). "Kvaerner to sell off top British bridge-builder". The Guardian.
- ^ "Company News: Kværner to sell Trafalgar House, a U.S. home builder". Dow Jones. 28 October 1998.
- ^ "Kvaerner plans Pounds 1bn assets sale; Cunard to go after Trafalgar falls to bid". The Times. 5 March 1996.