Elgin-based housebuilder Springfield Properties has agreed to take over Highlands rival Tulloch Homes in a £56.4 million all-cash deal.
AIM-listed Springfield said the deal will accelerate the company's growth and give it a foothold in "an area of high demand in Scotland". It is also expected to significantly enhance earnings from the first full year of ownership.
Springfield is also proposing a placing of 15.7 million shares at a price of 140p each to raise £22m to part-fund the acquisition. The price represents a discount of approximately 4.4 per cent to Springfield's closing share price on Tuesday.
READ MORE: Bigger homes with gardens and offices drive record revenue at housebuilder Springfield Properties
“This is another great acquisition for Springfield – and our third since coming to the market in 2017," Springfield chief executive Innes Smith said. "Tulloch Homes has an excellent reputation for building high-quality homes in the Scottish Highlands in and around Inverness.
"This is an area of high demand where we have been organically building a presence in recent years. As a result, it will significantly strengthen our foothold in an area of strategic importance and accelerate our growth, being earnings enhancing from the current year.
"We welcome all of the Tulloch Homes employees to the Springfield group and we look forward to working together to continue to grow our business.”
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