Housebuilder Bovis snaps up rival

Bovis Homes employs 900 people

Housebuilder Bovis Homes is buying rival Elite Homes for £25.7m to expand its business in the north of England.

Kent-based Bovis said the acquisition would add 800 plots to its land holdings that have building consent.

Elite Homes, which has gross assets of £55m, has its headquarters in Merseyside and sells new homes across north-west England and Yorkshire.

In addition to the purchase price, Bovis will assume £46.2m of debt through the deal.

"This acquisition represents a good opportunity for Bovis Homes to consolidate its presence in the north of England," said Bovis chief executive Malcolm Harris.

Last month, Bovis reported a 10% rise in pre-tax profits in the six months to the end of June to £58.4m and predicted that it will sell more houses this year than it did in 2006.

However, many economists expect the rate of house price inflation to slow or begin to fall next year as higher interest rates and banks' tougher lending criteria begin to bite.