Legal & General acquires remaining stake in Cala Homes
Source - SMW
Legal & General Group said Tuesday that its Legal & General Capital division acquired the 52.1% of CALA Homes which it did not previously own for at least £315m.
The acquisition cost of the 52.1% share capital Legal & General did not own was £315m plus additional transaction costs and financial adjustments to reflect the contribution of management and Patron during the period of our joint ownership. The total valuation of 100% of the equity in CALA Homes was £605m.
Legal & General said it believes that CALA Homes represents attractive growth prospects under its continued ownership based on Legal & General Capital's long term approach to investing and the attractive market for housebuilding in the UK.
Kerrigan Procter, Chief Executive Officer of Legal & General Capital said: 'Legal & General is delighted to assume full ownership of CALA Homes, a growing business which we know and understand well. It has a strong management team with proven experience of managing a housebuilding business across business cycles, and has delivered great returns for shareholders since its acquisition in 2013, having tripled in revenue during this time. I am excited to be working with the team as CALA Homes continues to develop and grow under our continued ownership.'
Alan Brown, Chief Executive of CALA Homes, said: 'Today's investment by Legal & General marks the start of another exciting new chapter for CALA Homes and is a fantastic endorsement of our growth potential from one of the UK's most highly-respected, blue-chip investors who shares our long-term vision.'