Housebuilder to be acquired in £655m deal

Miller Homes is set to be acquired by private equity group Bridgepoint in a deal totalling £655m from funds managed by GSO Capital Partners.

The housebuilder completed a total of 2,380 homes in 2016 and increased revenue by 13% to £565m as well as recording a 31% increase in operating profit to £103m for the year ended 31st December 2016.

“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 housebuilding,” said Chris Endsor, chief executive of Miller Homes.

“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."

Miller Homes focuses on sustainable developments on the edge of urban and suburban areas with three divisions based in the Midlands and South, North and Scotland. 

“The UK regional markets in which Miller operates are in good health with a positive sales environment and an attractive land buying market,” said James Wyatt, partner at Bridgepoint.

“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."

The investment in Miller Homes was made by Bridgepoint Europe V, a €4bn pan-European middle-market fund.

“We are delighted with the significant growth Miller has achieved since GSO’s investment in 2012,” said Michael Whitman, senior managing director at GSO Capital Partners.

“We are proud of both the exceptional management team and all employees.

“We wish the company great success in the future with Bridgepoint."

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