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John Laing Group

From Alfawiki
John Laing Group
Company typePrivate (subsidiary of KKR)
IndustryInfrastructure investment and development
Founded1848
FounderJames Laing
FateAcquired by KKR in September 2021
Headquarters
Mill Hill, London
,
United Kingdom
Area served
United Kingdom, international markets
Key people
Olivier Brousse (CEO from 2014)
ProductsInfrastructure projects (highways, rail systems, healthcare, education)
OwnerKKR
Number of employees
Approximately 10,000 (circa 1953) (1953)
ParentKKR
Websitewww.laing.com

John Laing Group is a UK-based investor, developer, and operator specializing in privately funded public sector infrastructure projects, including highways, rail systems, healthcare facilities, and educational institutions. These projects are delivered primarily through public-private partnership (PPP) and private finance initiative (PFI) frameworks. Previously listed on the London Stock Exchange and a constituent of the FTSE 250 Index, the company was acquired by KKR.

Established in 1848 by James Laing in Cumberland, the enterprise grew significantly under his son John Laing and subsequently John William Laing. It became a limited company in 1920 and relocated its headquarters to Mill Hill, London. The firm’s involvement in reconstruction efforts following World War II enhanced its reputation considerably. By the time it was listed on the London Stock Exchange in 1953, it employed approximately 10,000 staff. Leadership transitioned to William Kirby Laing and John Maurice Laing in 1957.

During the latter half of the 20th century, John Laing broadened its portfolio to include road building and power station projects while continuing housebuilding activities. Under the chairmanship of Martin Laing from 1985, the company expanded internationally into markets such as the Middle East, Continental Europe, and the United States. However, rapid expansion during the late 1990s adversely affected profitability, prompting workforce reductions and the sale of its construction division to O'Rourke for a nominal £1 in 2001. By 2002, property development and housebuilding units were divested to Kier Group and George Wimpey. Subsequently, the group concentrated on PPP/PFI infrastructure investment.

In December 2006, Henderson Group’s private equity division acquired John Laing plc. The Laing Rail segment—which included stakes in Chiltern Railways, London Overground Rail Operations, and Wrexham & Shropshire—was sold to Deutsche Bahn in 2007. John Laing became part of the Agility Trains consortium awarded the contract for the 2012 Intercity Express Programme. Its facilities management operations were divested to Carillion in October 2013. The company launched the John Laing Environmental Fund in 2014 and returned to the London Stock Exchange in February 2015. KKR completed its acquisition of John Laing Group in September 2021.

History

The origins of the company date back to 1848 when James Laing and his wife Ann Graham constructed their first home in Cumberland, using profits from this project to fund additional houses including Caldew House at Sebergham, which remained a family residence. Eventually, both family and business relocated near Carlisle.

Following James Laing’s passing in 1882, his son John Laing expanded operations within Carlisle's vicinity. John William Laing joined the firm before turning twenty, leading to the renaming as John Laing & Son. By 1910, with John William at the helm, the company undertook larger-scale projects such as factories. It incorporated as a limited company in 1920 and moved its headquarters two years later to a 13-acre site at Mill Hill, London. During World War II, John Laing contributed significantly by constructing components for Mulberry harbour, bolstering its post-war standing.

In 1950, fifth-generation family members William Kirby Laing and John Maurice Laing entered the business. The company went public on the London Stock Exchange in January 1953, with majority ownership retained by family members. John William Laing served as chairman while his sons acted as joint managing directors. At this time, workforce numbers approached 10,000 with rigorous quality control at every project site. John William retired in 1957. In 1964, John Laing acquired competitor civil engineering firm Holloway Brothers.

Under William Kirby and John Maurice Laing's leadership, diversification continued into power station construction and road building alongside ongoing housebuilding efforts. Martin Laing, representing the sixth generation of family leadership, became chairman in 1985 and accelerated diversification initiatives. Residential construction expanded across regions including the United Kingdom, Saudi Arabia, Oman, the United Arab Emirates, Iraq, Spain, and California. The company’s first foray into infrastructure toll roads came in 1969 with an investment in Europistas in Spain. The construction of the Second Severn Crossing in 1990 marked John Laing’s initial engagement with a public-private partnership (PPP).

In June 1995, amid British Rail's privatisation process, John Laing supported a management buyout of the Chiltern Railways franchise and gained majority ownership by early 1999.

By the late 1990s, annual revenue exceeded £1 billion; however, despite celebrating its 150th anniversary in 1998, profitability declined due to losses on major contracts such as Cardiff Millennium Stadium among other prominent projects. Increased competition and excess capacity pressured its construction division. Consequently, about 800 positions were cut in 2001 and its construction arm was sold to Laing O'Rourke for £1—a figure far below expectations. Sir Martin Laing resigned as executive chairman that year.

Refocusing efforts on PPP/PFI ventures led to restructuring into two divisions—Homes and Investments—by 2002. That year also saw sales of its property development arm to Kier Group and housebuilding business to George Wimpey. Its affordable housing sector was divested through a management buyout in 2003.

In December 2006, private equity firm Henderson Group completed acquisition of John Laing plc. In June 2007, a joint venture between Laing Rail and MTR Corporation secured operation rights for London Overground services. Later that year, German operator Deutsche Bahn purchased Laing Rail—which operated Chiltern Railways and held interests in other rail franchises.

In June 2008, John Laing partnered with Hitachi and Barclays Private Equity under Agility Trains to bid for the Intercity Express Programme contract; this culminated in a £4.5 billion agreement finalized in 2012 for new trains servicing Greater Western and InterCity East Coast routes.

The £270 million John Laing Infrastructure Fund was launched in 2010 to manage completed infrastructure assets. In October 2013, facilities management operations were sold to Carillion.

Olivier Brousse assumed CEO responsibilities in March 2014 with a strategic focus on expanding PPP infrastructure delivery and asset management services. That year also saw public launch of the £174 million John Laing Environmental Fund. In February 2015, John Laing re-entered trading on the London Stock Exchange.

In September 2018, ownership of its Infrastructure Fund transferred to Dalmore Capital and Equitix Investment Management; by June 2019 it had sold its Investment Advisory Agreement for the Environmental Fund to Foresight Group CI Ltd.

In May 2021, private equity firm KKR agreed terms to acquire John Laing Group for around £2 billion; shareholders unanimously endorsed this transaction which completed by September that year.

Major investments

Prominent investments encompass:

Laing Construction

John Laing’s erstwhile construction division, now incorporated into Laing O'Rourke, was responsible for delivering a variety of notable projects, including:

Laing Rail

The Laing Rail subsidiary managed operations of Chiltern Railways, co-operated the management of the London Overground alongside the MTR Corporation, and partnered with Renaissance Trains to run the service known as Wrexham & Shropshire. In 2008, ownership of Laing Rail was transferred to Deutsche Bahn.

Musical mentions

Laing is referenced together with Sir Robert McAlpine and George Wimpey at the beginning of Dominic Behan's 1960 satirical Irish ballad, "McAlpine's Fusiliers," as well as in his track "Building Up and Tearing England Down"—also recognized as "Paddy on the Road."

Sources

External links

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