Insurance giant Legal & General has agreed to a £605m takeover of housebuilder Cala, it confirmed this morning.
L&G has agreed to pay approximately £315m to acquire the 52 per cent of Cala it does not currently own.
Kerrigan Procter, chief executive 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.
L&G acquired Cala in 2013 with private equity group Patron Capital for £210m taking 46.5 per cent stakes in the business with Cala’s management holding the remaining 7 per cent.
Investment bank Lazard has reportedly being trying to find a buyer for Cala over the last 18 months, holding talks with prospective buyers which included Chinese property group Evergrande.
In its financial results for the 12 months to June 2017, Cala increased its revenue by 27 per cent to £747.9m and boosted pre-tax profits by 14 per cent to £68.5m.
In January it said that it expected to record a sixth year of revenue and profit growth in 2018.