Springfield Properties has announced that it has completed the acquisition of the issued share capital of Dawn Homes, a Glasgow-based housebuilder focussed on private housing in West Central Scotland and Ayrshire.
The company also announced that it raised gross proceeds of £15m through the placing of 12,500,000 new ordinary shares with new and existing investors. The net proceeds will be used to partially re-finance the initial cash consideration paid in respect of the acquisition.
The aims of the acquisition were to accelerate Springfield’s growth; expand its private land bank in West Central Scotland and Ayrshire; and provide an established supply chain in Glasgow with access to local labour and subcontractors.
Sandy Adam, Executive Chairman of Springfield, commented: “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 Springfield, 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.”
Pictured above, from left to right: Innes Smith, CEO of Springfield Properties; Sandy Adam, Executive Chairman of Springfield Properties; Alan MacDonald, Chairman of Dawn Homes; and Martin Egan, MD of Dawn.