16 April 2021
Terra Firma, a leading private equity investment firm specialising in purchasing asset backed businesses with strong growth potential, has entered into an agreement to acquire Kier Living from Kier Group plc (“Kier Group”) for £110 million.
Upon completion of the transaction in the coming weeks, which is conditional on Kier Group shareholder approval, Kier Living will be re-named Tilia Homes.
Kier Group announced its intention to sell its Living business in a strategic review in 2019 as it moves to simplify its portfolio and focus on its core businesses in Infrastructure Services, Construction and Property.
The acquisition marks an exciting new chapter for the homebuilding business which, in the year closing 30 June 2020, completed over 1,100 private and affordable home sales.
Guy Hands, Chairman and Chief Investment Officer at Terra Firma, said: “We are delighted to be acquiring the Kier Living business, which operates in the sweet-spot of the housing market, delivering affordably priced homes in areas with strong demand. Post-Covid, more and more people are thinking again about where they want to live, with a focus on having their own space, including more bedrooms and outdoor living areas. We believe the business, under a new, refreshed brand, has significant growth potential, and can play a critical role in delivering much-needed housing in communities across the UK.
With the acquisition being equity funded, Kier Living’s ability to compete in the land market will be significantly enhanced.”
The business will continue to be run by its existing senior leadership team.