US private equity group Apollo has reached an agreement to acquire UK housebuilder Miller from owners Bridgepoint Group for an undisclosed amount.
Established in 1934, Miller Homes is a premier homebuilder in the UK with a focus on building high-quality family homes in regional markets in England and Scotland. On track for a record 2021, the company builds approximately 4,000 homes a year across nine regions with ambitions to grow to 6,000 units annually in the medium-term.
Alex Humphreys, partner at Apollo, said: ‘Miller Homes has a strong presence in suburban locations that continue to see strong consumer demand, and we look forward to working alongside the talented management team to execute on their growth strategy.’
Christopher Hojlo, partner at Apollo, said: ‘We continue to see opportunities to invest in the residential housing market as consumer demand for new homes accelerates. Today's announcement further builds on Apollo's continued commitment to the housing sector, most recently including current and pending investments by Apollo and its affiliates in U.S. homebuilder, The New Home Company, and leading U.K. specialist mortgage lender, Foundation Home Loans. We look forward to leveraging our industry knowledge and relationships to scale the business and to provide more customers with high-quality family homes.’
Chris Endsor, Chief Executive Officer of Miller Homes, said: ‘This is an exciting development for Miller Homes in continuing our recent strong momentum. The past four years have witnessed a period of expansion and strong operational performance for Miller Homes, as well as having to adapt the business in exceptional circumstances. We have emerged stronger for it and are very well-placed to achieve our medium-term target of 6,000 units while maintaining the product quality and service for which we are known.’
Jamie Wyatt, partner and co-head of U.K. investment at Bridgepoint, said: ‘We are delighted to have supported Miller Homes and its management to grow the business over the last four years. Under our period of ownership, the number of houses sold per annum rose by a third, revenues exceeded £1 bn for the first time and profits increased by almost 50%. The business also expanded into new UK regions and completed two strategic acquisitions. We wish the whole team and their new investors every success in the exciting next phase of the Miller Homes journey.’
The Apollo Funds have committed financing to complete the acquisition and expect to redeem the existing financing prior to close. The transaction is subject to customary closing conditions and is expected to be completed in the first quarter of 2022.
