Springfield Properties acquires Edinburgh's Walker

Scottish house builder Springfield Properties has acquired Edinburgh-focussed private housing firm Walker Group for a net consideration of up to £31m.

Springfield said the acquisition of Walker would expand its land bank and sales presence into the "popular, high-growth commuter belt surrounding Edinburgh", and enhance earnings by a "low double-digit" amount in its current trading year as a result.

The AIM-listed outfit, which paid an initial consideration of £21m for Walker, said the acquisition was being funded from its existing cash balances and borrowing facilities with the Bank of Scotland.

Springfield will pay a further £4m on receipt of planning consent at a site in Carlaverock, another £2m on receipt of detailed planning consent at all of Walker's sites in Tranent, with a final £4m payable in equal amounts of either cash or shares on the first and second anniversary of the acquisition.

Executive chairman Sandy Adam said: "The acquisition of Walker supports Springfield's growth aspirations with land and skilled employees. It enables us to deliver housing more widely across Scotland at a time when supply continues to fall well short of demand and average house price growth in Scotland is ahead of the rest of the UK"

As of 1020 GMT, Springfield shares had climbed 5.74% to 124.25p.