LONDON, March 18 Insurer Legal & General
said on Monday it has bought a 46.5 percent stake in
Cala Group from Lloyds Banking Group in a deal that
values the British housebuilder at 210 million pounds ($318
L&G made the acquisition alongside private equity group
Patron Capital Partners, which will also buy a 46.5 percent
stake, while Cala's management will take a 7 percent share. The
deal will be financed by 140 million pounds of equity and 70
million pounds of debt.
L&G said its 65 million pound equity investment would be
financed from its own resources, and is expected to be earnings
accretive for L&G in its first year and to deliver a return
above the group's weighted average cost of capital.
Cala, which builds homes in Britain's Cotswolds region and
around Glasgow and Edinburgh in Scotland, posted profits before
tax of 11.4 million pounds and had gross assets of 354 million
pounds for the year to the end of June.
L&G's investment comes after a year of robust profits at
British housebuilders such as Persimmon and Taylor
Wimpey, which have largely beaten a sluggish market with
the help of government support and a strategy of buying land
cheaply during the recession.