The deal should mean that Westbury's turnover increases to more than 拢800m, up from 拢500m, and that unit sales rise 25% to about 5200 units this year.
Colin Cole, Westbury's deputy managing director, said the group wanted to reach turnover of 拢1bn by 2006. "We could have done that organically but this speeds up the process and brings us on," he said.
Housebuilders have been under increasing pressure from the City to consolidate to create larger firms, and last week's deal is the seventh since the beginning of last year (see table).
Cole said the acquisition would give the group access to the important South-east market and to the South-west. Westbury plans to add these regions to its eight existing divisions. It is understood that three of Prowting's regional offices in central and western England will close.
Westbury believes that the deal will produce savings of 拢7m a year by 2004, but has set aside 拢4.5m to cover redundancy and other costs. Cole said: "It's too early to say how many job losses there will be."
Westbury swooped on Prowting after it posted disappointing results earlier this year. But there had been growing speculation before then that the Prowting family wanted to sell its holding.
The deal values Prowting shares at 180p each, a 37% premium on Prowting's share price of 131p before the deal was announced last week. The Prowting family will walk away from the firm with nearly 拢90m.
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