Business
Acquisition of Scottish housebuilding business
Acquisition of Scottish housebuilding business.
About this update from Springfield Properties Plc
[{"type":"text","content":"\n \n \n 22 June 2022\n \n \n \n \n \n \n \n \n Springfield Properties plc\n \n \n \n (\"Springfield\" or the \"Group\")\n \n \n \n \n \n \n \n \n Acquisition of Mactaggart & Mickel's housebuilding business\n \n \n \n \n Springfield acquires premium Scottish housebuilding business and timber frame factory\n \n \n \n \n \n \n Springfield Properties (AIM: SPR), a leading housebuilder in Scotland delivering private, affordable and PRS housing, is pleased to announce that it has entered an agreement to acquire the Scottish housebuilding business of Mactaggart & Mickel Group Ltd (\"Mactaggart & Mickel\"), which has been delivering high-quality housing across the Central Belt of Scotland for almost 100 years. The total consideration is £46.3m, comprising £10.5m cash paid on completion and a deferred cash consideration of £35.8m to be paid proportionally as homes are sold over the next five years (the \"Acquisition\"). The Acquisition will be funded from Springfield's internal resources and existing debt facilities with Bank of Scotland.\n \n \n \n \n \n Under the terms of the Acquisition, the Group has acquired six live private and affordable sites with work in progress with a fair value of approximately £15m and fixed assets. The Group has also acquired a brand licence to build homes as Mactaggart & Mickel on a further 11 private and affordable sites, which will transfer to Springfield as homes are sold in line with the payments of the deferred consideration. The total 17 sites, of which 16 have planning permission and equating to the delivery of c. 700 homes, have a gross development value of c.\n \n £2\n 30m.\n \n The Group expects to generate gross margins on these sites materially in line with margins delivered by the rest of the Group.\n Springfield intends to retain all of\n Mactaggart & Mickel's\n housebuilding business employees.\n \n \n \n \n \n The Acquisition also includes Timber Systems, a timber frame factory near Glasgow. The Group already constructs 90% of its homes from timber kits and t\n he addition of a second timber frame factory will secure kit supply and increase capacity for future growth while further reducing its carbon footprint. Springfield will retain all of Timber Systems' employees.\n \n \n \n \n \n In addition, Springfield and Mactaggart & Mick...