McInerney Holdings pays €13.0m for British building firm Alexander

McINERNEY HOLDINGS yesterday paid €13 million for British building firm Alexander Developments (North East) Limited.

Alexander Developments was founded in the mid-1980s by chief executive Alex Chaytor and has an established reputation as a leading independent housebuilder in the north east of England. Based in Prime Minister Tony Blair's Sedgefield constituency, the company operates within an area bounded by Newcastle, Sunderland and Middlesbrough with a population catchment of more than two million. McInerney said its strategy in the British market is to secure earnings growth both organically and through acquisition.

"The acquisition of Alexander is a further step towards achieving the group's ambition to grow its UK operations to a scale and size similar to McInerney's Irish home building division. A progressive management team is in place at Alexander, with experience and vision that will benefit further from McInerney's involvement," the company said.

McInerney Holdings managing director Barry O'Connor said: "It is a foothold in a new geographic territory with a population of some two million people. The company represents an excellent corporate and cultural fit with our existing business. McInerney now has a strong regional presence in the north of England and this acquisition along with continued organic growth activities provides a strong platform for the group to take best advantage of a buoyant housing market demand in the UK."

The company said €3.7m may become payable by McInerney depending on the profit before interest and tax (PBIT) achieved by Alexander in the three-year period ending June 30, 2007.