Aberdeen housebuilder Cala has been sold to global investors in a deal worth more than £1.3 billion.
Ferguson Bidco – an entity owned by funds managed by Patron Capital and Sixth Street Partners – has acquired the business from Legal & General Group.
Cala chief executive Kevin Whitaker said the deal was “excellent news” for the company which has had roots in the city since 1875.
Its current Aberdeen projects include sites at Milltimber, Grandhome and Craibstone with the Cala North team headquartered in Westhill.
Deal shows ‘confidence’ in Cala
Sixth Street is a leading global investment firm which has more than £75bn of funds under management.
Patron has a further £10bn of assets under management and previously owned a 52% stake in Cala, which it sold to Legal & General in 2018.
Mr Whitaker said: “This investment by Sixth Street and Patron demonstrates their confidence in Cala’s business plan and further potential.
“We look forward to developing a strong partnership with Sixth Street and reigniting the excellent relationship we shared with Patron between 2013 and 2018.
“I would like to thank Legal & General for their support since they first invested in Cala.
“With their backing, Cala has successfully tripled the number of homes we build each year, whilst revenue and profits have grown five-and ten-fold respectively.”
The sale, which is expected to be completed by the end of this year, ends speculation over Cala Group’s future owner.
António Simões, Legal & General group chief executive, said: “Cala has been an important part of L&G for over a decade, with profits increasing ten-fold since our initial investment in 2013.
“The sale announced today will provide capital to deliver our strategic goals of sustainable growth alongside enhanced returns for shareholders.”
Cala’s Aberdeen roots
Cala employs more than 1,300 people across 10 offices and has around 75 live developments anytime.
Its current Aberdeen projects include flagship sites at Craibstone, Grandhome and Milltimber.
The business was founded in 1875 as the City of Aberdeen Land Association and was the first Scottish company listed on the London Stock Market.
Today, its Scottish and English operations are run from offices in Edinburgh and Wooburn Green, Buckinghamshire.
Financial services giant Legal & General acquired full control of the group in March 2018, raising its stake from 47.9% to 100% in a £315 million-plus deal.
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