Edinburgh-based Miller Homes has been bought from private equity firm Bridgepoint Group plc by funds managed by affiliates of New York-based investment firm Apollo and the existing Miller Homes management.
Financial terms were not disclosed, but the price is understood to be over £1.2 billion.
Bridgepoint bought Miller Homes in August 2017 in a transaction totalling £655 million from funds managed by GSO Capital Partners, a division of Blackstone.
Miller Homes is on track for a record 2021. The company builds 4,000 homes a year across the UK and has ambitions to grow to 6,000 units annually in the medium-term.
The transaction is subject to customary closing conditions and is expected to be completed in the first quarter of 2022.
The Apollo funds have “committed financing to complete the acquisition and expect to redeem the existing financing prior to close.”
Apollo partner Alex Humphreys said: “We are delighted that the Apollo Funds are acquiring Miller Homes.
“The company’s reputation for exceptional customer service and high-quality homes has differentiated it as a respected leading homebuilder.
“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.”
Apollo partner Christopher Hojlo 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.”
Miller Homes CEO Chris Endsor said: “This is an exciting development for Miller Homes in continuing our recent strong momentum.
“Apollo has deep housing expertise, with a global platform, extensive resources and capital to create value for all stakeholders.
“I would like to thank the team at Bridgepoint for all the support they have provided during their ownership of the business.
“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 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 billion for the first time and profits increased by almost 50%.
“The business also expanded into new U.K. 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.”
Rothschild and Co. and Moelis & Company LLC are serving as financial advisors to Bridgepoint, and Travers Smith is serving as legal counsel.
Barclays and HSBC are serving as financial advisors to Apollo, and Sidley Austin LLP is serving as legal counsel.
Miller Homes received legal advice from DLA Piper.