LONDON, March 18 (Reuters) - Insurer Legal & General said on Monday it has bought a 46.5 percent stake inCala Group from Lloyds Banking Group in a deal thatvalues the British housebuilder at 210 million pounds ($318million).
L&G made the acquisition alongside private equity groupPatron Capital Partners, which will also buy a 46.5 percentstake, while Cala's management will take a 7 percent share. Thedeal will be financed by 140 million pounds of equity and 70million pounds of debt.
L&G said its 65 million pound equity investment would befinanced from its own resources, and is expected to be earningsaccretive for L&G in its first year and to deliver a returnabove the group's weighted average cost of capital.
Cala, which builds homes in Britain's Cotswolds region andaround Glasgow and Edinburgh in Scotland, posted profits beforetax of 11.4 million pounds and had gross assets of 354 millionpounds for the year to the end of June.
L&G's investment comes after a year of robust profits atBritish housebuilders such as Persimmon and TaylorWimpey, which have largely beaten a sluggish market withthe help of government support and a strategy of buying landcheaply during the recession.
Lloyds (LLOY)
Legal & General (LGEN)
Persimmon (PSN)
Taylor Wimpey (TW.)