Homebuilder McInerney Holdings is set to buy a north of England operator in a €45 million deal, writes Barry O'Halloran

The company announced yesterday that it had a agreed to buy Gateshead-based Bowey Homes for approximately €35 million cash. Under the terms of the deal, it will also assume around €10.15 million in debt.

The move is the second acquisition by McInerney in the UK this year and will add 13 sites and 397 houses under construction to its portfolio.

McInerney said yesterday that Bowey was founded in 1907 and operated in the Newcastle, Sunderland, Durham, Consett and Northumberland areas.

Last year it had pretax profits of €5.63 million. The company has a pipeline of five potential new sites, with the capacity for 200 or so units. On average, it completes the construction of 135 new homes every year. It has deposits on hand for 60 units.

The company specialises in building for the owner-occupier market. McInerney managing director, Barry O'Connor, said yesterday the company's new purchase would not overlap with its existing businesses in the north of England.

"The acquisition is expected to immediately enhance earnings," he said. "It significantly adds to our UK operational capability, product mix and management team."

McInerney is one of the leading housebuilders in the Republic and is operating in 33 sites with 4,700 units around the State.

Last year its pretax profits grew 26 per cent to €50 million on a turnover of €489 million.