Miller Homes in renewed sale speculation
Miller Homes was yesterday at the centre of renewed speculation over a takeover deal that could value the Edinburghbased housebuilder at more than £600 million.
The company declined to comment on a report by Sky News that private equity group Bridgepoint, owner of the Pret A Manger sandwich chain, could strike a deal for the business as soon as this month.
Speculation over a possible deal with Bridgepoint first emerged in April, although the price tag then had been put at more than £800m.
GSO Capital Partners, a division of private equity firm Blackstone, has a controlling stake in Miller, which pulled the plug on plans for a £450m flotation in 2014.
The housebuilder saw its pre-tax profits jump 44 per cent £89.3m last year, on a 13 per cent hike in revenues to £565m.
At the time of its results, published in March, Miller chief executive Chris Endsor played down the impact of last year’s Brexit vote, saying the company “didn’t miss a beat” during the second half of 2016, with sales “substantially up” on a year earlier.
The company had attributed its decision to shelve its float plans due to turbulent market conditions at the time, and in March Endsor stressed that there were “no immediate plans” to reconsider such a move.
“We have a very solid capital structure to fuel our growth and that is all in place,” he said. “There is no requirement to go to capital markets.” During its last financial year the group saw a 2 per cent uptick in average selling prices to £231,000.