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The Bovis Homes Group has announced that it has acquired regional housebuilder Elite Homes for £25.7 million.

In a statement the company confirmed that the deal would also include the assumption of £46.2 million of net debt.

Bovis said the deal would allow the firm to build upon its presence in the north of England, where Elite Homes is based. The company which is being taken over also has operations across the north-west and Yorkshire.

Commenting on the deal Bovis chief executive Malcolm Harris said: "This acquisition represents a good opportunity for Bovis Homes to consolidate its presence in the north of England, developing its position in this important market as part of its longer term regional expansion plans."

He added that the acquisition also improved Bovis' land holdings in northern England by over 800 consented plots and provided "immediate opportunities" to convert strategic land.

Mr Harris stressed that the takeover supported the delivery of Bovis' existing growth plans in the region.

Elite Homes reported a pre-tax profit of £6.4 million for the year to October 31st 2006, said Bovis, which revealed that the firm it was acquiring also had a turnover of £58.4 million and gross assets of £55 million last year.

Last month Bovis reported a ten per cent increase in its own first-half pre-tax profits, with the housebuilder expecting to sell more homes this year.

The company said its pre-tax profits for the six months to the end of June climbed to £58.4 million, despite a backdrop of rising interest rates - which the firm said had led to signs of slowing house-price growth.