Scottish housebuilder, Springfield Properties, has acquired the issued share capital of DHomes 2014 Holdings Limited (trading as Dawn Homes), a Glasgow-based housebuilder focussed on private housing in West Central Scotland and Ayrshire, for a consideration of up to £20.1 million.
The Company also announces that it has conditionally raised gross proceeds of £15 million through the placing of 12,500,000 new ordinary shares with new and existing investors at 120 pence per Placing Share. The net proceeds will be used to partially re-finance the initial cash consideration paid in respect of the Acquisition.
Sandy Adam, Executive Chairman of the Company, commented on the Acquisition of Dawn Homes: “This was a rare opportunity to acquire a profitable company that builds great homes. Dawn Homes is a well-run business with an excellent reputation in Western Central Scotland. I am delighted that they are joining our team and welcome all their employees into our company. There is a massive need for more housing in Scotland and Springfield will play a significant part in addressing that need. We will be supporting the skilled Dawn Homes team to build more homes each year. Overall, this acquisition will enable Springfield to grow and deliver housing more widely across Scotland.”
Innes Smith, CEO of the Company, added: “We are delighted to have successfully completed this placing and for the strong support received from new and existing investors. The acquisition is part of our stated strategy of accelerating growth through expansion into new areas. Through the purchase of Dawn Homes, we have gained another foothold in another part of Scotland. The focus of both companies continues to be looking after our customers, building great homes and building more homes. We look forward to updating the market on our progress.”