David McLean's group finance director John Kendrick last night bought the north-west based firm's house-building division.
Kendrick is understood to be paying around £40m for the subsidiary, which recorded profits of £13.9m in its last set of accounts.
The new business will trade under the name 'Elan Homes' after Kendrick was given permission for the buyout from David McLean's administrators Deloitte.
Barclays is providing the equity and senior debt funding for the deal. Around 90 David McLean employees will join the new company.
'We are delighted to have been able to secure a going concern sale of the house building business to Elan Homes,' said joint administrator Nick Edwards. 'This sale will preserve a significant number of jobs, and also represents best value for the creditors of the David McLean group.
'Elan Homes has a strong management team, a strong financial base, and we are confident that they will be able to take the business forward on a stable footing.'
Documents filed at Companies House show Kendrick has changed the name of an off-the-shelf-company, Broomco (4168), to Elan Homes on Monday.
Adam Bravington, David McLean finance director, is the company's other director and company secretary.
David McLean filed for administration at the end of October with debts of around £100m. The 65-year-old company’s contracting business was closed and 134 redundancies were made.
David McLean had a funding facility with Barclays Bank, arranged by Barclays Capital, and was also backed by the Royal Bank of Scotland and Bank of Scotland Corporate through an inter-creditor agreement. The amount owed to these banks is £70m.
David McLean Developments, which is developing the White River retail scheme in St Austell, Cornwall and the 1,300 homes Garden Festival scheme in Liverpool, is not believed to be a part of the buy out, and can still be bought by another party.
The company will be officially launched in January next year.
In its last set of accounts David McLean Homes had net assets of £25.3m and turnover of £124.1m.