Private equity group Bridgepoint is to buy Miller Homes for £655m, using funds managed by Blackstone’s GSO Capital Partners.
The largest privately owned housebuilder in the UK, Scotland-based Miller Homes completed 2,380 homes in 2016, all outside London, and reported a 13% increase in revenue to £565m and a 31% increase in operating profit to £103m.
Jamie Wyatt, partner at Bridgepoint, said: “The UK regional markets in which Miller operates are in good health with a positive sales environment and an attractive land buying market.
“Miller’s location within those markets combined with its robust financial performance position it well to address future growth in the UK new-build housing market, where demand currently outstrips supply.”
The investment in Miller Homes was made by Bridgepoint Europe V, a €4bn (£3.6bn) pan-European middle-market fund.
During the financial crisis the fund came under the control of its lenders before being restricted and taken on by Blackstone’s GSO in 2012. Lloyds and Coller Capital both also had an interest.
Miller Homes chief executive Chris Endsor said: “GSO has been a great supporter of our business and I look forward to welcoming Bridgepoint as our new shareholder in a favourable macro-economic climate for UK housebuilding.”
Moelis acted as financial adviser for Bridgepoint, and Savills advised on the property. Rothschild is financial adviser for Miller Homes and JLL property.
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