Persimmon, based in York, has acquired Hillreed Homes in Kent for £37.5m and with it 3,400 land plots in the more lucrative south-east.
Hillreed focuses on high quality family housing and has strong strategic land holdings. Its offices in Maidstone, Kent, will become the head office of Persimmon Homes South East.
Nine of its 10 existing developments will remain as Hillreed Homes while one will become a Charles Church brand development, a statement said.
One analyst said the acquisition was expected to be the beginning of several mergers and acquisitions as housebuilders return to stability after severe financial problems in the sector.
With housebuilders concentrating on the south-east and higher margin homes, Persimmon has acquired a diversified portfolio of land, one analyst said.
Persimmon chief executive Mike Farley said: "Hillreed’s focus on high quality family housing is highly complementary to our existing Persimmon, Charles Church and Westbury brands, and its attractive land bank adds to our already strong regional business in the important south-east market."
