Bridgepoint to acquire Miller Homes

Bridgepoint to acquire Miller Homes

One of the UK’s largest housebuilders, Miller Homes, is to be acquired by private equity group Bridgepoint in a £655m transaction from funds managed by GSO Capital Partners.

Established in 1934 and the largest privately-owned housebuilder in the UK, Miller Homes has a strong regional footprint through the Midlands & South, North of England, and Scotland, and a reputation for delivering quality, family homes in desirable and high demand locations.

The Scotland-headquartered company focuses on sustainable developments on the edge of urban or suburban areas, typically within 45 minutes of the nearest largest town or city and in 2016, it completed a total of 2,380 homes.

For the year to 31 December 2016, the company reported a 13% increase in revenue to £565m and a 31% increase in operating profit to £103m.

Miller Homes chief executive Chris Endsor said: "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.

"GSO have 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."

Jamie Wyatt, partner at Bridgepoint, said: "The UK regional markets in which Miller operates are in good health with a positive sales environment and an attractive land buying market. 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 UK new build housing market is a £35bn market and with an acknowledged long-term structural shortage of new housing, it is estimated that the UK needs around 1m additional new homes.