Japanese construction and real estate group Daiwa House has agreed a deal to acquire a circa 30% stake in Miller Homes from Apollo-managed funds for an undisclosed price.
Apollo will remain the controlling shareholder of Miller Homes with the company continuing to benefit from Apollo’s support alongside Daiwa House’s global construction and real estate expertise.
There will be no change to Miller Homes’ management team, strategy, capital structure or day-to-day operations as a result of the transaction and the company will continue to operate under its existing brands, Miller Homes and St Modwen Homes.
Established in 1934, Miller Homes is targeting the delivery of 7,000 new homes a year across multiple tenures, up from its current rate of 5,000 per year.
Stewart Lynes, chief executive officer of Miller Homes, said: “Today’s transaction marks a significant milestone for Miller Homes. The support of the Apollo team has been instrumental in successfully executing on our growth strategy to date and we are pleased to be welcoming Daiwa House as a long-term strategic partner. Their expertise, in conjunction with Apollo, will further strengthen the Miller Homes business as we continue our focus on delivering high-quality homes for our customers across the UK.”
Rajesh Jegadeesh and Peter Sinensky, deal team leads at Apollo, added: “Miller Homes is one of the highest quality businesses in the UK residential sector, and we are proud of what the management team has built over the past four and a half years. This transaction reflects the strength of the Miller Homes business today and its sector-leading financial performance, leaving the company well-positioned for further profitable expansion. We are pleased to welcome Daiwa House as a strategic partner as we continue to support Miller’s growth strategy.”
Keiichi Yoshii, representative director and chairman, CEO of Daiwa House, said: “Miller Homes is an impressive business with a strong brand, a highly experienced management team and an attractive long-term growth outlook. We are delighted to invest alongside Apollo and look forward to contributing our global housing and development expertise to support Miller’s continued growth and the delivery of high quality homes and communities across the UK.”
Rothschild & Co served as financial adviser to Apollo Funds and Miller Homes.
