TWO North East construction companies are joining forces.
The Echo revealed last month that Gentoo Construction was in talks with Tolent about a possible merger.
“This partnership will create a sustainable regional business with an enhanced offer to the market.”Steve Lanaghan, Executive Director of Gentoo Group
Now the pair have put pen to paper on a deal which sees them create a new joint venture company, to be known as Gentoo Tolent Limited.
The deal came into effect from the start of this month.
Steve Lanaghan, executive director of Gentoo Group, said the deal would allow the two companies to combine their expertise in bidding for contracts, expanding the variety of projects in which they could get involved.
Mr Lanaghan said: “Tolent is a highly respected and experienced construction company, with whom we have enjoyed an excellent working relationship.”
“The joint venture will enable both organisations to share skills and knowledge in different and complementary areas of work.
“With a number of synergies between our businesses, this partnership will create a sustainable regional business with an enhanced offer to the market.”
Tolent chairman John Wood said the two companies would be stronger as a result of the move.
The deal would build on areas in which the two organisations were already well-matched.
Mr Wood said: “This is a great opportunity to boost the strengths of both companies and develop a partnership with a common objective of providing a quality product that is value for money.
“We are looking forward to getting started.”
The Echo understands it is too early to predict what implications the move will have for Sunderland-based Gentoo Construction’s 60-strong workforce.