Developer David McLean has taken a major step into the Midlands property market - by snapping up the Shrewsbury-based Jennings Group for £38.5 million.
The move comes as part of McLean's bid to become one of the UK's top ten house builders by 2015.
Frank Reil, group managing director for David McLean Holdings' homes and development wing, said: "We intend to make the David McLean high quality brand recognised and available throughout the UK, and this, being our most sizable company purchase to date, will allow us to gain a significant foothold in the competitive and vibrant Midland property market."
The deal comes after work began on the flagship £350 million Masshouse regeneration project in Birmingham's Eastside area, which signalled McLean's entry into the region.
The project, spearheaded by Masshouse Developments, is a joint venture between the David McLean Group, Nikal and the Royal Bank of Scotland.
Mr Reil said buying Jennings was expected to further strengthen McLean's position in the Midlands, allowing the company to more actively contribute to the " urban renaissance" of the region's towns and cities.
He said: "Along with this acquisition, our future planned expansion into Yorkshire and the North East will further consolidate our position as one of the major players in the UK housing market."
In the last financial year, Jennings completed 230 homes in locations all across the Midlands region. With the addition of Jennings, David McLean's portfolio will also increase to over 3,000 units.
It is expected that Jennings Homes - which employs 70 people - will be renamed David McLean Homes.
Eric Wood, former owner of Jennings, said: " I think this is a good move for Jennings, as the industry becomes more and more consolidated it gives Jennings the muscle to compete in an increasingly competitive market."