SPRINGFIELD Properties is acquiring the Scottish housebuilding business of Mactaggart & Mickel Group in a deal valued at £46.3 million.
Springfield has also acquired Mactaggart & Mickel’s timber systems operation – including a timber frame factory near Glasgow. The two companies have entered a ‘strategic alliance’ that gives Springfield opportunities for future acquisitions of sites from Mactaggart & Mickel’s strategic land portfolio across Scotland.
Under the terms of the acquisition, Springfield has acquired six live private and affordable sites with work in progress. The group has also acquired a brand licence to build homes as Mactaggart & Mickel on a further 11 private and affordable sites, which will transfer to Springfield as homes are sold in line with the payments of the deferred consideration.
Innes Smith, CEO of Springfield Properties, said, “We are very pleased to welcome Mactaggart & Mickel’s Scottish housebuilding business into the Springfield Group. As well as bringing another premium brand into the group, this acquisition gives us land, with planning permission, in areas of significant demand. The structure of the acquisition – with the majority of the payment to be made as homes are completed – de-risks the deal and creates an effective and efficient means of acquiring land.
“The addition of a timber frame facility in the central belt, alongside our existing facility in Elgin, secures our supply of timber kits and provides further capacity to support our next stage of growth. It will also reduce our carbon footprint by enabling local manufacture of all kits.”
Paul McAninch, group finance director of Mactaggart & Mickel, added, “We welcome this agreement with Springfield, which we believe provides a strong platform for growth for both parties. Our company has had a proud tradition as a leading housebuilder in Scotland, which is built on the work of its dedicated teams.
“This tradition will continue, and I’m pleased that there will be continuity of employment as a result of this agreement. I’d like to thank all our staff for their dedication over the years as we look to our second century as a successful business. I’d also like to wish transferring colleagues every success for their future.”
Mactaggart & Mickel’s Scottish housebuilding business will continue to operate within the Springfield Group under its own brand, led by its existing directors Peter Shepherd, Marion Forbes and Joanne Casey. All employees working on Mactaggart & Mickel’s development sites, and the Timber Systems business retain their jobs under the agreement.
The announcement also marks a change for Mactaggart & Mickel’s leadership. Ed Monaghan is to retire in October as group CEO after working for the company for more than 40 years, including more than 15 as chief executive. Paul McAninch will lead the group as its new CEO.
Mactaggart & Mickel’s Investments; Strategic Land; Commercial Property; Private Rental Sector (Lettings); and Contracts divisions will remain under Mactaggart & Mickel Group control. Following the agreement, Mactaggart & Mickel said it will continue to grow its strategic land business, which includes around 2,300 acres of sites and a growing portfolio of around 3,600 acres in England, and its portfolio of private rented homes.
The total consideration is £46.3 million, comprising £10.5 million cash paid on completion and a deferred cash consideration of £35.8 million to 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 Bank of Scotland.