Persimmon buys Merewood for £22.6m

Persimmon has bought North East-based housebuilder Merewood for £22.6m.

Merewood operates under two brands - Merewood Homes and Crowther Homes - in Lancashire and Cumbria. Last year the group completed 281 new home sales with an average selling price of £126,000, producing a revenue of £35.4m.

The acquisition includes £9m of debt, a landbank in excess of 1,000 plots plus 30ha of strategic land. Merewood will be merged with Persimmon's northern operation and be rebranded under its new parent's name. 

The merger will result in savings in overheads, benefits in purchasing power and opportunities to introduce a wider range of houses.

Persimmon group chief executive John Wite said: "The majority of the [acquired] land is either currently being developed or is ready for immediate use. It has been purchased at better prices than are currently available on the open market."