Springfield Properties has completed the acquisition of Glasgow-based housebuilder, Dawn Homes.

The deal, which is worth £20.1 million, will see Springfield will pay an initial consideration of £17.6m, or which £15.5m will be settled in cash. A further £2.1m will be satisfied by the issue of 1,750,000 new ordinary shares.

In addition, a further £2.5m may be payable in cash, subject to Springfield receiving zoning on Dawn Homes' site at Johnstone, near Glasgow. Net debt of approximately £6.7m will be assumed by the company once the deal is fully complete.

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Innes Smith, Chief Executive Officer (CEO) of Springfield, said: "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."

Sandy Adam, Executive Chairman, said: "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."

(LM/MH)