Barratt Developments buys UK timber frame manufacturer Oregon

Barratt Developments has acquired Oregon, one of the UK's largest timber frame manufacturers and one of the housebuilder's key suppliers, for an undisclosed sum.

Following the acquisition, which has no material impact on the board's full-year expectations, Oregon will remain based in Selkirk, Scotland, where its management team will continue to lead the business, complementing the Barratt operations in Scotland.

Last year, Barratt announced new targets for volume growth of 3-5% over the medium term, supported by a target to build at least 20% of its homes using an element of offsite construction, including timber frame, by 2020.

Over the last three years, the company has built around 5,500 homes using timber frame construction. It currently uses timber frame in most of the residential properties it builds in Scotland and is increasing its use across England and Wales.

Chief operating officer Steven Boyes said: "Barratt is committed to increasing the number of homes we build using offsite construction as part of our overall volume growth aspirations and to mitigate the current skills challenges facing the industry. Oregon is the perfect company to help us do that, with a highly experienced management team, a skilled workforce and a high quality product."

At 1120 BST, the shares were up 0.7% at 561.60p.