Countryside has bought Westleigh Group from Palatine Private Equity for £135.4m.
Westleigh is the largest independent housebuilder in the Midlands that focuses on the delivery of affordable homes to registered providers.
Palatine originally invested in Westleigh in July 2016. It says has made a 3x return and 90% IRR in under two years.
Since the Palatine investment, pre-tax earnings have increased from £9m in the year to March 2016 to more than £16m in the financial year to 31 March 2018. It currently employs 450 staff and builds more than 1,100 homes a year.
Countryside said the acquisition will be funded from existing cash balances and borrowing facilities, and is in line with its existing strategy to expand its Partnerships business.
Ian Sutcliffe, chief-executive of Countryside, said: “Westleigh is a well-run business with a strong strategic, geographic and cultural fit to Countryside and provides us with an excellent platform for further Partnerships growth. We see huge opportunity in combining Westleigh’s regional expertise with the Countryside mixed-tenure business model.”
Current Westleigh chairman Chris Beighton will step down once the deal has been completed.
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