Transactions - AUGUST 8, 2017

Bridgepoint close to buying British housebuilder

by Released

Private equity group Bridgepoint will acquire Miller Homes, one of the United Kingdom’s leading housebuilders, in a transaction totaling £655 million ($865.6 million), from funds managed by GSO Capital Partners.

Miller Homes focuses on sustainable developments on the edge of urban or suburban areas, typically within 45 minutes of the nearest largest town or city and is recognized for providing outstanding levels of customer service.

In 2016, the company completed a total of 2,380 homes. For the year to December 31, 2016, the company reported a 13 percent increase in revenue to £565 million ($733 million) and a 31 percent increase in operating profit to £103 million ($134 million).

Commenting on the acquisition by Bridgepoint, Miller Homes chief executive Chris Endsor said: “2016 was an outstanding year for Miller Homes delivering operating profit in excess of £100m for the first time and outperforming on all key financial metrics for the fifth consecutive year. We fully expect 2017 to continue that upward trend.”

The U.K. new build housing market is a £35 billion ($45 billion) market and with an acknowledged long-term structural shortage of new housing, it is estimated that the United Kingdom needs approximately 1 million additional new homes.

The investment in Miller Homes was made by Bridgepoint Europe V, a €4 billion billion ($5.2 billion) pan-European middle-market fund.

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