Springfield Properties acquires Scottish housebuilding business of Mactaggart & Mickel
Housebuilder Springfield Properties has agreed to acquire the Scottish housebuilding business of Mactaggart & Mickel Group for £46.3m.
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Springfield said on Wednesday that it will pay £10.5m in cash upon completion, while a deferred cash consideration of £35.8m will be paid proportionally as homes are sold over the next five years.
The acquisition will be funded from Springfield's internal resources and existing debt facilities with the Bank of Scotland.
Springfield highlighted that the acquisition was expected to be earnings enhancing in the current year ending 31 May 2023.
The AIM-listed firm added that it expects to report results in line with market expectations for the year ended 31 May 2022, with "good revenue growth" and a "better-than-expected" reduction in net debt to roughly £39.0m.
As of 1045 BST, Springfield shares were up 2.99% at 118.95p.
Reporting by Iain Gilbert at Sharecast.com