Patron sells Cala stake to Legal & General in £605m deal

Kenny Wastell
13 March 2018

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Patron Capital Partners has sold its remaining stake in UK home builder Cala Group to Legal & General Capital, in a deal giving the business an equity valuation of ТЃ605m.

The buyer, which was already invested in Cala, has acquired a 52% stake in the business for £315m and is now the sole owner.

According to a statement by Legal & General, the business has increased its profits at a compound annual growth rate of 12% during the course of the last three years, while turnover has increased from £241m to £748m since 2013.

Since Parton's initial investment in the group five years ago, Cala has acquired luxury house builder Banner Homes and increased its presence in the south-east of England. Its overall house sales have increased from 743 in the year ending in June 2014 to 1,677 in its most recent financial year.

Previous funding
Patron and Legal & General acquired Cala for £210m in March 2013. Each investor took a 46.5% equity stake in the business. Epiris also invested £13m in the deal and provided a further £15m of funding in March 2014 to facilitate the acquisition of Banner Homes.

Epiris then sold its stakes in Cala and residential equity release business Retirement Bridge to Patron for a combined £94m in April 2017.

Company
Founded in 1875, Edinburgh-headquartered Cala is a home building group. The company generated an adjusted operating profit before tax of £91.5m in 2017, according to the statement.

People
Patron Capital – Keith Breslauer (managing director).
Legal & General Capital – Kerrigan Procter (CEO).
Cala Group – Alan Brown (CEO).