15th Feb 2006 08:00
McInerney Holdings PLC15 February 2006 Wednesday, 15th February 2006 McINERNEY HOLDINGS plc ACQUIRES AUGUSTA DEVELOPMENTS LTD McInerney Holdings plc ('McInerney' or 'the Group') is pleased to announce theacquisition of UK based Augusta Developments Limited ('Augusta' or 'theCompany') a provider of social housing projects, with immediate effect. Based in Milton Keynes, Augusta Developments was founded in 1994 and operates inNorthampton, Wellingborough, Oxford, Milton Keynes, Bedford and Luton. Itsactivities are focused on the Registered Social Landlord ('RSL') marketproviding affordable homes. The acquisition of Augusta is seen as highly complementary to McInerney's UKstrategy and will provide a platform to further develop the Group's business.Social housing accounts for some 12% of the UK housing market and is animportant segment. Augusta is well positioned to take best advantage of thismarket under McInerney's ownership. Barry O'Connor, Managing Director, McInerney Holdings plc stated today: "This acquisition provides the Group with an entry into the significant socialhomes segment of the UK housing market. It also provides a foothold forMcInerney in a new geographic region, the South Midlands area, which will assistour regional expansion in the private housing sector." Consideration Total consideration of up to £6.27 million (€9.13m) will be payable as follows: • An initial consideration of £3.27 million (€4.76m) payable in cash• Additional earn-out consideration up to a maximum of £3.0million (€4.37m) may become payable by McInerney depending on the earnings before interest and tax (EBIT) achieved by Augusta in the four year period following acquisition. BusinessAugusta is an established regional builder and is currently active on sixprojects involving 92 units with a combined value of £6.488m (€9.45m). TheCompany specialises in sourcing land suitable for affordable homes andnegotiating the construction of homes with regional Housing Associations. Itskey areas of activity are in the South Midlands area. ENDS FOR INFORMATION: Siobhan Molloy Tel: (01) 676 01 68 or (086) 817 50 66Weber Shandwick FCC About McInerney Holdings plc McInerney Holdings plc is one of Ireland's leading development companies, withdivisions specialising in various aspects of the construction market. McInerneyHoldings plc comprises four divisions operating in Ireland, Spain and the UnitedKingdom. The company is Ireland's largest national homebuilder, and undertakesextensive commercial and leisure projects both in Ireland and abroad. Thecompany is listed on the Dublin and London Stock Exchanges (ISE: MCI.I/LSE:MCI). See www.mcinerney.ie for further information. This announcement has been issued through the Companies Announcement Service of the Irish Stock Exchange This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Medcaw Investm.