Developer Rok Property Solutions this morning said it had bought two construction/building firms in Lincolnshire and Yorkshire and announced it would raise funds for the acquisitions via a £7m placing.
Rok has bought Grimsby-based construction firm Topcon (Builders & Contractors) for £3.2m.
The group said the purchase would be funded by the issue of 23,695 Rok shares with institutional investors.
The 62-strong Topcon business focuses principally on North Lincolnshire and South Yorkshire and will be integrated into Rok's existing structure.
Rok has also bought Wakefield-based Lemmeleg Building & Contracting, which focuses principally on the Yorkshire area, for £1.7m, to be satisfied by the issue to the vendors on completion of 21,871 Rok shares, and £1.1m in cash.
Rok said up to a further 10,025 Rok shares will be issued and up to a further £445,000 (held in escrow) is payable in cash by 31 January, 2006 dependent upon the audited net assets of Lemmeleg on completion.
The group said both businesses would fit into Rok's construction and building operations and would increase that division's network in the North of England to eight branches.
Commenting on the acquisitions and vendor placing, Garvis Snook, chief executive, said: "Our strategy is to be the nation's local builder - these acquisitions provide us with an opportunity to build a significant presence in the Lincolnshire and Yorkshire regions, where we are currently not represented."
References: EGi News 06/07/05
