John Laing
Encyclopedia
John Laing plc is a British
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. Prior to being acquired by Henderson Private Equity in December 2006, John Laing plc was listed on the London Stock Exchange
and was a constituent of the FTSE 250 Index
.
. The £150 proceeds from the first house financed the building of the next two houses on the same plot of land, one of which was kept by the Laing family
to live in. The family and the business later moved near Carlisle
.
When James Laing died in 1882, his son, John Laing (born in 1842) took over the running of the company. John began to undertake larger contracts but confined the business to the Carlisle area.
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 and Son. By 1910, John William Laing was running the business. More employees were recruited and larger projects were undertaken, including factory construction.
In 1920 the firm became a limited company, and two years later moved its headquarters from Carlisle to a thirteen acre (5 ha) site at Mill Hill
in north-west London
.
William Kirby Laing and John Maurice Laing, the fifth generation of the founding family, joined the company in 1950.
John Laing & Sons (Holdings) Ltd was first listed on the London Stock Exchange
in 1952. The family and its trusts and charities held the majority of the shares. John William Laing became the chairman, and 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.
Under William Kirby Laing and James 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.
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.
As the company celebrated its 150th anniversary in 1998, it faced falling profits caused by cost overruns on the Millennium project and continuing problems within its construction division, related to competition and overcapacity.
In 1999 John Laing plc purchased a controlling interest in the Chiltern Rail franchise and by 2002 had structured itself into two main divisions, namely Homes and Investments. It underwent yet another change when Sir Martin Laing retired in early 2002. Bill Forrester took over as executive chairman. For the first time in its history Laing did not have a member of the founding family at the head of the company.
The business expanded rapidly in the late 1990s, such that for the year ended 31 December 2001 its turnover was in excess of £1 billion. Following significant losses on certain construction contracts (particularly the Cardiff Millennium Stadium
) the company cut 800 jobs and in 2001 disposed of its construction division to O'Rourke
for £1. It focused instead on its PPP / PFI
activities. Laing's property developments divisions were sold to Kier Group
, and its house building arm was sold to George Wimpey
in 2002.
In December 2006 John Laing plc was acquired by the private equity arm of Henderson Group
.
The Laing Rail division - operators of Chiltern Railways
and London Overground
(with MTR Corporation
), and holders of a stake in the open-access railway operator Wrexham & Shropshire - was put up for sale by in September 2007. The division was purchased by German rail operator Deutsche Bahn
in January 2008, subject to approval by authorities.
In June 2008 John Laing formed a consortium with Hitachi
and Barclays Private Equity
called Agility Trains
to bid for the contract to design, manufacture, and maintain a fleet of long-distance trains for the Intercity Express Programme
. The bid was successful and the contract was awarded to the consortium on the 12 February 2009.
, undertook a number of landmark projects including:
The M1 motorway
completed in 1959, Coventry Cathedral
completed in 1962, Clifton Cathedral
completed in 1973, the Sizewell B nuclear power station completed in 1995, the Second Severn Crossing
completed in 1996, the Millennium Stadium
in Cardiff
completed in 1999 and Norfolk and Norwich University Hospital
completed in 2001.
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
.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
developer and operator of privately financed, public sector infrastructure projects such as roads, railways, hospitals and schools through Public-Private Partnership
Public-private partnership
Public–private partnership describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies...
(PPP) and Private Finance Initiative
Private Finance Initiative
The private finance initiative is a way of creating "public–private partnerships" by funding public infrastructure projects with private capital...
(PFI) arrangements. Prior to being acquired by Henderson Private Equity in December 2006, John Laing plc was listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and was a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
.
History
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 CumberlandCumberland
Cumberland is a historic county of North West England, on the border with Scotland, from the 12th century until 1974. It formed an administrative county from 1889 to 1974 and now forms part of Cumbria....
. The £150 proceeds from the first house financed the building of the next two houses on the same plot of land, one of which was kept by the Laing family
Laing Family
The Laing Family is a British family. The family is famous through their association with John Laing plc, a construction company founded in 1848. The company grew under the leadership of Sir John Laing and passed through the hands of his sons Sir Kirby Laing and Sir Maurice Laing. The Laing...
to live in. The family and the business later moved near Carlisle
City of Carlisle
The City of Carlisle is a local government district of Cumbria, England, with the status of a city and non-metropolitan district. It is named after its largest settlement, Carlisle, but covers a far larger area which includes the towns of Brampton and Longtown, as well as outlying villages...
.
When James Laing died in 1882, his son, John Laing (born in 1842) took over the running of the company. John began to undertake larger contracts but confined the business to the Carlisle area.
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 and Son. By 1910, John William Laing was running the business. More employees were recruited and larger projects were undertaken, including factory construction.
In 1920 the firm became a limited company, and two years later moved its headquarters from Carlisle to a thirteen acre (5 ha) site at Mill Hill
Mill Hill
Mill Hill is a place in the London Borough of Barnet. It is a suburb situated 9 miles north west of Charing Cross. Mill Hill was in the historic county of Middlesex until it was absorbed by London...
in north-west London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
.
William Kirby Laing and John Maurice Laing, the fifth generation of the founding family, joined the company in 1950.
John Laing & Sons (Holdings) Ltd was first listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 1952. The family and its trusts and charities held the majority of the shares. John William Laing became the chairman, and 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.
Martin Laing
Sir John Martin Kirby Laing, CBE, DL, FRICS is a British entrepreneur in the construction industry.Martin Laing was executive chairman of John Laing plc, the firm founded by his great-great-grandfather James Laing , but resigned in 2001 when the company faced major losses in its construction...
, of the sixth generation of the founding family, became chairman.
Martin Laing determined that the company should begin to diversify. Home construction in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
, Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
, the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
, Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, and California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
was now one of the major sources of the company's growth.
As the company celebrated its 150th anniversary in 1998, it faced falling profits caused by cost overruns on the Millennium project and continuing problems within its construction division, related to competition and overcapacity.
In 1999 John Laing plc purchased a controlling interest in the Chiltern Rail franchise and by 2002 had structured itself into two main divisions, namely Homes and Investments. It underwent yet another change when Sir Martin Laing retired in early 2002. Bill Forrester took over as executive chairman. For the first time in its history Laing did not have a member of the founding family at the head of the company.
The business expanded rapidly in the late 1990s, such that for the year ended 31 December 2001 its turnover was in excess of £1 billion. Following significant losses on certain construction contracts (particularly the Cardiff Millennium Stadium
Millennium Stadium
The Millennium Stadium is the national stadium of Wales, located in the capital, Cardiff. It is the home of the Wales national rugby union team and also frequently stages games of the Wales national football team, but is also host to many other large scale events, such as the Super Special Stage...
) the company cut 800 jobs and in 2001 disposed of its construction division to O'Rourke
Laing O'Rourke
Laing O'Rourke is a multinational construction company headquartered in Dartford, United Kingdom. It was founded in 1978....
for £1. It focused instead on its PPP / PFI
Private Finance Initiative
The private finance initiative is a way of creating "public–private partnerships" by funding public infrastructure projects with private capital...
activities. Laing's property developments divisions were sold to Kier Group
Kier Group
Kier Group plc is a construction, services and property group active in building and civil engineering, support services, public and private housebuilding, land development and the Private Finance Initiative...
, and its house building arm was sold to George Wimpey
George Wimpey
George Wimpey was formed in 1880 and, based in Hammersmith, operated largely as a road surfacing contractor. The business was acquired by Godfrey Mitchell in 1919 and he developed it into the UK’s pre-eminent construction and housebuilding firm. In 2007, Wimpey merged with Taylor Woodrow to create...
in 2002.
In December 2006 John Laing plc was acquired by the private equity arm of Henderson Group
Henderson Group
Henderson Group plc is a global investment management company with its principal place of business in the City of London. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. It is also listed on the Australian Securities Exchange as a member of the ASX200 index...
.
The Laing Rail division - operators of Chiltern Railways
Chiltern Railways
Chiltern Railways is a British train operating company. It was set up at the privatisation of British Rail in 1996, and operates local passenger trains from Marylebone station in London to Aylesbury and main-line trains on the Chiltern Main Line to Birmingham Snow Hill with its associated branches...
and London Overground
London Overground
London Overground is a suburban rail network in London and Hertfordshire. It has been operated by London Overground Rail Operations since 2007 as part of the National Rail network, under the franchise control and branding of Transport for London...
(with MTR Corporation
MTR Corporation
MTR Corporation Limited is a company listed on the Hong Kong Exchange and included in the Hang Seng Index. MTR owns and runs the Hong Kong MTR metro system, and is also a major property developer and landlord in Hong Kong...
), and holders of a stake in the open-access railway operator Wrexham & Shropshire - was put up for sale by in September 2007. The division was purchased by German rail operator Deutsche Bahn
Deutsche Bahn
Deutsche Bahn AG is the German national railway company, a private joint stock company . Headquartered in Berlin, it came into existence in 1994 as the successor to the former state railways of Germany, the Deutsche Bundesbahn of West Germany and the Deutsche Reichsbahn of East Germany...
in January 2008, subject to approval by authorities.
In June 2008 John Laing formed a consortium with Hitachi
Hitachi
Hitachi is a multinational corporation specializing in high-technology.Hitachi may also refer to:*Hitachi, Ibaraki, Japan*Hitachi province, former province of Japan*Prince Hitachi and Princess Hitachi, members of the Japanese imperial family...
and Barclays Private Equity
Barclays Private Equity
Barclays Private Equity is the Private Equity division of Barclays Capital, the Investment Banking arm of Barclays plc. BPE have seven offices across four countries. Started in 1982 they have invested in over 350 businesses including Admiral Group and Dial-a-Phone. Typically €500m is invested per...
called Agility Trains
Agility Trains
Agility Trains is consortium of Hitachi, John Laing, and Barclays Private Equity which has been awarded a contract to design, manufacture, and maintain a fleet of long-distance trains to replace Britain's InterCity 125 fleet as part of the Department for Transport's Intercity Express Programme.The...
to bid for the contract to design, manufacture, and maintain a fleet of long-distance trains for the Intercity Express Programme
Intercity Express Programme
The Intercity Express Programme is an initiative of the Department for Transport in the United Kingdom to procure new trains to replace the InterCity 125 fleet on the East Coast Main Line and Great Western Main Line, as well as replacing other trainsets on long distance services from London to...
. The bid was successful and the contract was awarded to the consortium on the 12 February 2009.
Laing Construction
John Laing’s former construction division, Laing ConstructionLaing O'Rourke
Laing O'Rourke is a multinational construction company headquartered in Dartford, United Kingdom. It was founded in 1978....
, undertook a number of landmark projects including:
The M1 motorway
M1 motorway
The M1 is a north–south motorway in England primarily connecting London to Leeds, where it joins the A1 near Aberford. While the M1 is considered to be the first inter-urban motorway to be completed in the United Kingdom, the first road to be built to motorway standard in the country was the...
completed in 1959, Coventry Cathedral
Coventry Cathedral
Coventry Cathedral, also known as St Michael's Cathedral, is the seat of the Bishop of Coventry and the Diocese of Coventry, in Coventry, West Midlands, England. The current bishop is the Right Revd Christopher Cocksworth....
completed in 1962, Clifton Cathedral
Clifton Cathedral
The Cathedral Church of SS. Peter and Paul is the Roman Catholic cathedral in the English city of Bristol. Located in the Clifton area of the city, it is the seat of the Diocese of Clifton and is known as Clifton Cathedral....
completed in 1973, the Sizewell B nuclear power station completed in 1995, the Second Severn Crossing
Second Severn Crossing
The Second Severn Crossing is a bridge which carries the M4 motorway over the River Severn between England and Wales, inaugurated on 5 June 1996 by HRH The Prince of Wales to augment the traffic capacity of the original Severn Bridge built in 1966...
completed in 1996, the Millennium Stadium
Millennium Stadium
The Millennium Stadium is the national stadium of Wales, located in the capital, Cardiff. It is the home of the Wales national rugby union team and also frequently stages games of the Wales national football team, but is also host to many other large scale events, such as the Super Special Stage...
in Cardiff
Cardiff
Cardiff is the capital, largest city and most populous county of Wales and the 10th largest city in the United Kingdom. The city is Wales' chief commercial centre, the base for most national cultural and sporting institutions, the Welsh national media, and the seat of the National Assembly for...
completed in 1999 and Norfolk and Norwich University Hospital
Norfolk and Norwich University Hospital
The Norfolk and Norwich University Hospital is a National Health Service academic teaching hospital located on the off the A11 road and the Watton Road on the southern outskirts of Norwich, England....
completed in 2001.
Laing Rail
The subsidiary Laing Rail owned and operated Chiltern RailwaysChiltern Railways
Chiltern Railways is a British train operating company. It was set up at the privatisation of British Rail in 1996, and operates local passenger trains from Marylebone station in London to Aylesbury and main-line trains on the Chiltern Main Line to Birmingham Snow Hill with its associated branches...
and was joint operator of London Overground
London Overground
London Overground is a suburban rail network in London and Hertfordshire. It has been operated by London Overground Rail Operations since 2007 as part of the National Rail network, under the franchise control and branding of Transport for London...
(with MTR Corporation
MTR Corporation
MTR Corporation Limited is a company listed on the Hong Kong Exchange and included in the Hang Seng Index. MTR owns and runs the Hong Kong MTR metro system, and is also a major property developer and landlord in Hong Kong...
) and Wrexham & Shropshire (with Renaissance Trains
Renaissance Trains
Renaissance Trains is a company formed in 1997 with the purpose of promoting and investing in "open access" passenger and freight rail businesses in the United Kingdom, as well as promoting and investing in rail industry innovation. Its shareholders are John Nelson, Peter Wilkinson, Mike Jones and...
). In 2008 Laing Rail was sold to Deutsche Bahn
Deutsche Bahn
Deutsche Bahn AG is the German national railway company, a private joint stock company . Headquartered in Berlin, it came into existence in 1994 as the successor to the former state railways of Germany, the Deutsche Bundesbahn of West Germany and the Deutsche Reichsbahn of East Germany...
.