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Countryside Properties buys partnerships housebuilder Westleigh for up to £135.4m
Countryside Properties has acquired Leicester-based partnerships housebuilder Westleigh for up to £135.4m in cash on a debt free and cash free basis.
The cash consideration comprises up to £23.5m deferred for two years from completion, a proportion of which is subject to performance.
The deal, which is funded from existing cash balances and borrowing facilities, is expected to deliver high single digit accretion from the first full year of ownership.
Countryside said the acquisition was in line with its strategy to expand its partnerships business.
Chief executive Ian Sutcliffe said: "Westleigh is a well-run business with a strong strategic, geographic and cultural fit to Countryside and provides us with an excellent platform for further partnerships growth. We see huge opportunity in combining Westleigh's regional expertise with the Countryside mixed tenure business model."
In the year ended 31 March 2018, Westleigh delivered 1,159 homes in partnership with local authorities and housing associations, of which 92% were affordable. On an unaudited basis, revenue was £150.6m, operating profit was £15.6m and gross assets were £76.1m at 31 March 2018.
Countryside also gave a very brief update on current trading, saying the first six months of the financial year have been in line with its expectations.