Pan-European private equity group Patron and UK insurer Legal & General are to jointly acquire UK housebuilder Cala.
Pan-European private equity group Patron and UK insurer Legal & General are to jointly acquire UK housebuilder Cala.
Under the terms of the agreement, Legal & General and Patron will each take a 46.5% equity stake in Cala alongside the existing senior management team who will take a 7% share.
The transaction comprises £140 mln (€163 mln) of equity and £70 mln of debt, valuing Cala at £210 mln.
Patron will lead the investment and both Legal & General and Patron will have a representative on Cala’s board. Lloyds Banking Group will continue its support of the business with a new £100 mln facility.
Cala - an acronym for City of Aberdeen Land Association - operates in n the North, East and West of Scotland, in the Midlands and in the South East of England. The company builds around 875 homes each year.
