British insurer Legal & General has agreed to purchase a 46.5% equity stake in CALA Group (CALA), from Lloyds Banking, in a deal valued at nearly 210m.
Based on the term of the agreement, the underwriter will acquire the stake as an equal partner with Patron Capital Partners, along with management who will take a 7% share.
The deal will be financed by 140m of equity and 70m of debt and after completion of the agreement both companies will have a representative on CALA's board.
Legal & General group M&A and strategy director Wadham Downing said that the company will continue its development as a group by integrating its strength in organic growth with selected acquisitions, which satisfy its strategic and financial criteria.
"We are confident that with this combined expertise and the financial resources that both Patron and Legal & General bring, we can build many more homes in the UK and help CALA grow and realise its potential," Downing added.