One of the UK’s largest house-builders – which has its regional headquarters in Derby – is to be sold for £655 million.
European private equity group Bridgepoint has agreed to buy Miller Homes, which has its Midlands division based in Centro Place, on Pride Park.
Founded in 1934, Miller, which has its head office in Edinburgh, is the largest privately-owned house-builder in the UK.
Last year, the company built almost 2,400 homes – and reported a 13% increase in sales to £565 million and a 31% rise in profits to £103 million.
Bridgepoint’s purchase of Miller Homes is being made from funds managed by credit investment firm GSO Capital Partners.
Miller Homes chief executive Chris Endsor has welcomed the deal
Chris Endsor, chief executive of Miller Homes, said: “2016 was an outstanding year for Miller Homes delivering operating profit in excess of £100 million 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.
“GSO has been a great supporter of our business and I look forward to welcoming Bridgepoint as our new shareholder as we undertake our next phase of growth, in an ongoing favourable macro-economic climate for UK house-building.”
The UK new-build housing market is estimated to be worth around £35 billion – and is set to keep growing because of housing shortages.
Some of Miller’s developments locally include Langley Country Park, at Mackworth, Highfields, at Littleover and Priory Grange, at Repton.
Miller built almost 2,400 new homes in the UK last year
Jamie Wyatt, partner at Bridgepoint, said: “The UK regional markets in which Miller operates are in good health with a positive sales environment and an attractive land buying market.
“Miller’s strategic position within those markets combined with its historic robust financial performance position it well to address future growth in the UK new build housing market where demand currently outstrips supply.”
Michael Whitman, senior managing director at GSO Capital Partners, said: “We are delighted with the significant growth Miller has achieved since GSO’s investment in 2012.
“We are proud of both the exceptional management team and all employees. We wish the company great success in the future with Bridgepoint.”
Source: Derby Telegraph