National housebuilder Westbury plc is to buy competitor Prowting plc for £141m in a deal which will help increase production for its Space4 modular timber frame factory.
The acquisition, subject to formal approvals, is expected to be complete by the end of June.
The addition of brick and block builder Prowting will give Westbury an additional 1,200 homes per year, enhance its landbank and increase its presence in central and south-east England. But it will also lead to job cuts.
Robin Davies, group marketing director for Westbury, said the Space4 factory at Castle Bromwich had the capacity to produce additional volume and he predicted an increase’ in production in light of the Prowting purchase. The latter’s development sites will be reviewed to evaluate the potential for using timber frame housing types as opposed to Prowting’s usual brick and block. Space4 would then have the opportunity to supply them.
He said: ‘We do see Space4 as an important strategic advantage for the group in speeding up the rate of production and it’s very likely it will be a very useful part of the process to realise the benefits of the Prowting acquisition more rapidly.’
Westbury had previously hinted it may look to acquisition as a way of increasing production at Space4. The factory is expected to produce 1,500 homes this year out of a total of 4,000 new homes.
The company recently announced record results for the ninth consecutive year (TTJ May 11) and aims to double housebuilding turnover within five years. Further acquisitions are planned.
