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House builder buys rival St Modwen Homes for £215m
A house builder has agreed to buy rival firm St Modwen Homes for a reported £215m.
The deal sees Miller Homes taking on 19 live sites, totalling around 3,500 plots for new homes, as well as a further five strategic sites.
Miller Homes said this purchase would help it to meet its goal of building 6,000 homes a year.
The house builder will bolster its existing business in the West Midlands, East Midlands and South of England and enter the South West for the first time.
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It will continue to operate the business under the St Modwen Homes name and will establish a new regional office in the South West of England.
According to various press reports, Miller Homes is paying £75m upfront for its rival, with a further £120m deferred and the remainder subject to certain trigger conditions being met.
Blackstone, the US private equity giant, bought St Modwen Properties for £1.3bn in 2021 and has now decided to offload the housebuilding arm.
Under Blackstone, St Modwen turned over £368m in its most recent published results for 2022 from sales of 1,313 homes and made a pre-tax profit of £5.3m.
The new deal is subject to regulatory approval and is expected to close in the first quarter of 2025.
Stewart Lynes, chief executive of Miller Homes, said: “We were attracted to the quality and location of St Modwen Homes’ land, helping us grow and expand to new areas.
“Through operating St Modwen Homes under its brand, we can continue to deliver choice to the market, while maintaining our commitments to quality, sustainability and the customer experience.”
Miller Homes is owned by another US investor, Apollo Global Management, and operates across England and Scotland. It turned over £1bn in 2023, with 3,475 completions and made a pre-tax profit of £149.7m.
In August, Blackstone’s for-profit provider Sage Homes offloaded over 3,000 shared ownership properties to the Universities Superannuation Scheme, the UK’s largest private pension fund.
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