Cala acquires upmarket developer Banner Homes
Housebuilder Cala Group has accelerated its expansion plans by buying upmarket developer Banner Homes.
The Edinburgh-based firm, which currently has 17 active developments across Scotland, said Banner was a "perfect strategic fit" for Cala.
Banner operates from 21 sites across three regional centres in the northern and southern Home Counties and the Midlands.
The value of the acquisition has not been disclosed.
In February, Cala announced plans to double in size organically by 2017.
The combined Cala and Banner business will directly employ more than 600 people and have a turnover of more than £500m in its first full year, with net assets of £200m.
In the longer term, the company expects to deliver about 2,000 homes annually by the 2017 financial year at an average selling price of about £400,000.
The business aims to continue its focus on securing new land for development, with ongoing financial support from investors Patron Capital and Legal & General.
Cala group chief executive Alan Brown said: "We are delighted to have acquired such a high quality business which fits perfectly with Cala's own market position and expansion plans.
"Banner has a deserved reputation as one of the finest luxury house builders in the UK and combining the two businesses will put us in the top 10 of UK home builders with significant growth potential."
He added: "Both businesses build high quality homes, place a strong emphasis on customer service and have very similar cultures and I am tremendously excited about bringing together the best of both Cala and Banner in order to drive the enlarged group forward."
Cala, which stands for City of Aberdeen Land Association, returned to profit in 2011 after several years of losses from 2008.