Legal & General has agreed the sale of UK housebuilder Cala for an enterprise value of just over £1.3bn.
The business has been bought by Ferguson Bidco, an entity owned by funds managed by Sixth Street Partners and Patron Capital.
Patron Capital managing director Keith Breslauer said: “We are pleased to be able to back the Cala business once again. Cala is one of the UK’s leading housebuilders with a best-in-class landbank and a focus on building high-quality homes, being consistently ranked five-star for customer service.
“We look forward to working closely with Cala’s impressive management team and our partner, Sixth Street, to further build the business and help tackle the undersupply of homes in the UK.”
Patron offloaded its majority stake in Cala to L&G six years ago.
L&G said the consideration for the sale would result in cash proceeds of £1.2bn, of which £500m will be paid at closing with the remaining being paid over the next five years on a deferred non-contingent basis.
António Simões, group chief executive at Legal & General, said: “This transaction demonstrates continued momentum in executing our strategy, simplifying our portfolio to enable a sharper focus on our core, synergistic businesses.
“Cala has been an important part of L&G for over a decade, with profits increasing tenfold since our initial investment in 2013. The sale announced today will provide capital to deliver our strategic goals of sustainable growth alongside enhanced returns for shareholders.”
Cala chief executive Kevin Whitaker added: “The acquisition by Sixth Street Partners and Patron Capital demonstrates confidence in Cala’s business plan and growth potential. L&G has been a great support to Cala throughout its investment and ownership. Since 2013, we have grown revenues and profits fivefold and tenfold respectively, and tripled the number of homes we build each year.”
The transaction is expected to complete in Q4 2024.
Rothschild advised on the sale.
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