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Bridgepoint to acquire Miller Homes

Private equity group Bridgepoint is to acquire Miller Homes, one of the UK’s largest housebuilders, in a deal worth GBP655 million 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 three divisions (Midlands & South, North, and Scotland) and a reputation for delivering quality, family homes in desirable and high demand locations. The 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 is recognised for providing outstanding levels of customer service.
In 2016, the company completed a total of 2,380 homes. For the year to 31 December 2016, the company reported a 13 per cent increase in revenue to GBP565 million and a 31 per cent increase in operating profit to GBP103 million.
Commenting on the acquisition by Bridgepoint, Miller Homes Chief Executive Chris Endsor says: “2016 was an outstanding year for Miller Homes delivering operating profit in excess of GBP100m 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 (pictured), partner at Bridgepoint, says: “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.”
Michael Whitman, Senior Managing Director at GSO Capital Partners, says: “We are delighted with the significant growth Miller has achieved since GSO’s investment in 2012. We are proud of both the exceptional management team and all employees. We wish the company great success in the future with Bridgepoint.”
The UK new build housing market is a GBP35 billion market and with an acknowledged long-term structural shortage of new housing, it is estimated that the UK needs circa one million additional new homes.
The investment in Miller Homes was made by Bridgepoint Europe V, a EUR4 billion pan-European middle-market fund.

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