Legal & General sells Cala Group for £1.35bn
Legal & General said it had sold UK house builder Cala for £1.35bn to its former joint venture partner Patron Capital and investment group Sixth Street Partners as it looks to focus on its main businesses.
Source: Sharecast
The insurer said it would receive cash proceeds of £1.16bn, of which £500m will be paid at closing with the rest paid over the next five years.
António Simões, L&G’s chief executive, said the deal showed “continued momentum in executing our strategy, simplifying our portfolio to enable a sharper focus on our core, synergistic businesses”.
"Cala has been an important part of L&G for over a decade, with profits increasing ten-fold since our initial investment in 2013," said L&G chief executive Antonio Simoes.
Patron formerly owned 46.5% of Cala alongside L&G but offloaded its share in 2018 at a valuation of £605m. The house builder produced just under 3,000 homes last year.
L&G said proceeds from the sale would be used for reinvestment and returns to shareholders through ongoing buybacks.
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