Japanese group Daiwa House is to acquire a 30% minority stake in Miller Homes from Apollo-managed funds, as the UK housebuilder pursues expansion plans.
Apollo Funds will remain the controlling shareholder in Miller Homes following the deal, with the company continuing to benefit from Apollo’s backing alongside Daiwa House’s global construction and real estate expertise.
Miller Homes, founded in 1934, operates across 11 regional offices in England, Scotland and Wales. The business is targeting 7,000 new homes a year across multiple tenures, up from its current rate of 5,000.
There will be no change to Miller Homes’ management team, strategy, capital structure or day-to-day operations as a result of the transaction. The company will continue to operate under its existing Miller Homes and St. Modwen Homes brands.
Apollo Funds acquired Miller Homes in 2022 and has since overseen the acquisition and integration of St. Modwen Homes.
Stewart Lynes, chief executive at Miller Homes, said: “[This] 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, said: “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, chairman and chief executive 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.”
The transaction is subject to satisfaction of closing conditions, including regulatory approvals, and is expected to close later this year. Rothschild & Co served as financial adviser to Apollo Funds and Miller Homes.
Main image: A Miller Homes development
Read next: Ocean energy pipeline hits 200 devices by 2030
Are you a building professional? Sign up for a FREE MEMBERSHIP to upload news stories, post job vacancies, and connect with colleagues on our secure social feed.
