Cadwallader said Kier provided the funding after the buyout struck difficulties in its negotiations for funding with venture capital firms. He said: "The fact that Kier understood the business and the industry meant there were fewer hurdles than there were in trying to deal with a venture capital firm."
Persimmon put the businesses up for sale soon after it took over Beazer last winter and the buyout offer has been on the table since February.
The social housing business has been renamed Partnerships First, whereas the prefabrication factories in Ipswich and Livingston have kept the Torwood name.
Kier chairman Colin Busby said it was a sound investment for the group in a sector where it was under-represented. He added that the investment was expected to be enhancing earnings in its first year.
Kier was once part of Beazer before being sold to Hanson in 1992. It was then was demerged from Hanson through a management buyout.
Cadwallader said the social housing market was buoyant and set for increased growth, especially in the southern half of England.
He said: "With our offices in the Midlands, the South-east and the South-west we think we can cover the bulk of where the new houses will be. We're looking to grow turnover to over 拢110m by 2005." Turnover for the year to June 2002 is expected to be 拢70m.
Cadwallader said closing the deal would also enable Partnerships First to agree an extension to the contract with social landlord consortium Amphion to build 2000 units over four years. So far, more than 300 have been built, with another 470 planned for next year.
The buyout team has decided to offer shares to all its 250 staff through an employee benefit trust.
Other directors with the management team are finance director David Hodson, South-east director Stephen Putman, South-west director Bob Phillips and Midlands director Michael Lewis. Two directors from the factories have also joined the board.
