John Laing Group facts for kids
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| Private | |
| Industry | Infrastructure |
| Founded | 1848 |
| Headquarters | London, England, UK |
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Key people
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Will Samuel (Chairman) Olivier Brousse, (CEO) |
| Revenue |  GB£25 million (2020) |
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Operating income
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GB£-53 million (2020) |
| GB£-66 million (2020) |
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| Owner | KKR |
John Laing Group plc is a British company that invests in, develops, and manages important public projects. These projects include things like roads, railways, hospitals, and schools. They often work with the government through special agreements called public-private partnerships (PPP) or private finance initiatives (PFI). The company used to be listed on the London Stock Exchange. However, an American company called Kohlberg Kravis Roberts (KKR) bought it in 2021.
Contents
History of John Laing Group
The story of John Laing Group began in 1848. A man named James Laing and his wife, Ann Graham, started building houses in Cumberland, England. They bought a piece of land for £30 and built their first house. The money they earned from selling it helped them build more houses. Later, the family and their business moved closer to Carlisle.
Early Growth and Family Leadership
When James Laing passed away in 1882, his son, John Laing, took over the company. John started taking on bigger building jobs, but he kept the business focused on the Carlisle area. John's son, John William Laing, joined the company before he was 20. This is how the company became "John Laing and Son." By 1910, John William Laing was in charge. He hired more people and took on even larger projects, like building factories.
In 1920, the company officially became a limited company. Two years later, its main office moved from Carlisle to a larger site in Mill Hill, north-west London. During the Second World War, John Laing helped build important structures like parts of the Mulberry harbour. Their work during and after the war helped the company become very well-known.
Expanding Across the UK
In 1950, William Kirby Laing and John Maurice Laing, who were the fifth generation of the Laing family, joined the company. In January 1953, John Laing & Sons (Holdings) Ltd was first listed on the London Stock Exchange. At that time, the Laing family still owned most of the company's shares. John William Laing became the chairman, and his sons became managing directors. By this point, the company had about 10,000 employees. John William Laing retired in 1957. In 1964, the company bought another engineering business called Holloway Brothers.
Under William Kirby Laing and John Maurice Laing, the company continued to grow. They won contracts to build power stations and started building roads, while still constructing houses. In 1985, Martin Laing, from the sixth generation of the family, became chairman. Martin Laing decided the company should try new things. Building homes in the United Kingdom, Saudi Arabia, Oman, the United Arab Emirates, Iraq, Spain, and California became a big part of their growth. In 1969, the company invested in a toll road project in Spain, which was their first big infrastructure investment. Another important moment was in 1990, when they helped build the Second Severn Crossing. This was John Laing's first major public-private partnership project.
Focusing on New Opportunities
In June 1995, during the time when British railways were becoming private, John Laing supported a deal that created Chiltern Railways. In early 1999, the company decided to buy a controlling share in Chiltern Railways.
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In the late 1990s, the company grew very quickly. By the end of 2001, its income was over £1 billion. However, around its 150th anniversary in 1998, the company started losing money on some big building jobs. These included projects like the Millennium Stadium in Cardiff and the National Physical Laboratory. Because of these problems, the company cut 800 jobs in 2001. They also sold their construction part of the business to O'Rourke for just £1. Sir Martin Laing then stepped down as chairman.
The company then decided to focus on its PPP / PFI projects. By 2002, it had two main parts: Homes and Investments. In April 2002, Laing sold its property development parts to Kier Group. Its house-building part was also sold to George Wimpey later that year. In 2003, its affordable housing division was sold.
New Ownership and Investments
In December 2006, John Laing plc was bought by the private equity part of Henderson Group. In June 2007, John Laing Rail and MTR Corporation formed a joint company called London Overground Rail Operations. This company was chosen to run the London Overground train system. A few months later, the Laing Rail division, which ran Chiltern Railways and London Overground, was sold. The German train company Deutsche Bahn bought it in January 2008.
In June 2008, John Laing teamed up with Hitachi and Barclays Private Equity to form a group called Agility Trains. They wanted to win a contract to design, build, and maintain new long-distance trains for the Intercity Express Programme. Their bid was successful, and in 2012, they signed a £4.5 billion contract for new trains for the Great Western Main Line and East Coast Main Line. In 2010, the company created the John Laing Infrastructure Fund to manage completed infrastructure projects. In October 2013, they sold their facilities management business to Carillion.
In March 2014, Olivier Brousse became the Chief Executive. He worked hard to find more PPP projects for building and managing infrastructure. The John Laing Environmental Fund was also started in 2014. In February 2015, the company was listed on the London Stock Exchange again.
In September 2018, John Laing sold the John Laing Infrastructure Fund Ltd. In June 2019, John Laing sold another part of its environmental fund business.
On May 19, 2021, the American private equity firm Kohlberg Kravis Roberts (KKR) announced it would buy John Laing Group for about £2 billion. John Laing agreed to the deal, and it was officially approved in September 2021.
Important Projects
John Laing has invested in many important projects, including:
- The Intercity Express Programme (sold in 2018)
- The Greater Manchester Waste Recycling and Combined Heat & Power Programme
- The New Royal Adelaide Hospital in Australia
- The A1 Autostrada in Poland
- The Denver Eagle P3 Project in the USA
Past Building Projects
John Laing's former construction division, which is now part of Laing O'Rourke, built many famous structures. Some of these include:
- The M1 motorway (completed in 1959)
- Coventry Cathedral (completed in 1962)
- The Bull Ring shopping centre in Birmingham (completed in 1964)
- Westway road in London (completed in 1970)
- St Thomas' Hospital North Wing in London (completed in 1975)
- London Central Mosque (completed in 1977)
- The Stansted Airport Terminal Building (completed in 1991)
- The Sizewell B nuclear power station (completed in 1995)
- The Second Severn Crossing bridge (completed in 1996)
- The British Library (completed in 1997)
- The Millennium Stadium in Cardiff (completed in 1999)
Past Rail Operations
The company also had a part of its business called Laing Rail. This part owned and ran Chiltern Railways. It also helped run London Overground (with MTR Corporation) and had a share in Wrexham & Shropshire. In 2008, Laing Rail was sold to Deutsche Bahn, a German railway company.
