Privately owned housebuilder David McLean has bought Devon-based Sharman Group for £20m as part of plans to become a top 10 housebuilder by 2011.
Barnstaple-based Sharman has eight developments throughout Cornwall and Devon and last year completed around 100 units.
The company also has a joinery company and a plant hire business.
The acquisition will add more than 500 units to David McLean’s current landbank of 1,600 units and will increase the company’s land bank in the South West.
David McLean plans to increase the number of homes built by Sharman, shortly to be renamed David McLean Homes (South West), by 50% during the next 12 months via further land acquisitions.
The acquisition was partly funded by David McLean’s own resources and partly through senior debt finance provided by Bank of Scotland Corporate Banking in Liverpool.
David McLean managing director Frank Reil said: “This is a tactical acquisition by the David McLean Group to expand the company and in the process increase our landbank and development sites.
“It is our intention to ensure the David McLean brand and product is available throughout the UK.
“This will be achieved by further acquisitions of other independent housing developers particularly in the Midlands and Yorkshire together with organic growth of our existing and new regions.”
The news follows David McLean’s purchase of Cheshire-based Egerton Estates in 2002.
References: EGi News 01/03/04
