Miller Homes, a prominent UK housebuilder owned by Apollo Global Management, has announced the acquisition of rival firm St Modwen Homes for approximately £215 million. This strategic move is set to enhance Miller Homes’ footprint, particularly in the South West of England, aligning with its growth objectives.
The acquisition encompasses 19 active development sites, adding around 3,500 housing plots to Miller Homes’ portfolio. St Modwen Homes, previously under the ownership of U.S. private equity firm Blackstone since 2021, reported a turnover of £368 million in 2022 from the sale of 1,313 homes, yielding a pre-tax profit of £5.3 million.
The financial structure of the deal includes an initial payment of £75 million, with an additional £120 million deferred, and the remaining amount contingent upon specific performance milestones. The transaction is pending regulatory approval and is anticipated to conclude in the first quarter of 2025.
Stewart Lynes, Chief Executive of Miller Homes, stated: “We were attracted to the quality and location of St Modwen Homes’ land, helping us grow and expand to new areas. Through operating St Modwen Homes under its brand, we can continue to deliver choice to the market, while maintaining our commitments to quality, sustainability, and the customer experience.”
This acquisition is a significant step toward Miller Homes’ ambition to increase its annual housing output, aiming to build 6,000 homes per year. In 2023, Miller Homes reported a turnover of £1 billion, completing 3,475 homes with a pre-tax profit of £149.7 million.
The deal also reflects the dynamic nature of the UK housing market, where strategic acquisitions are instrumental for growth and market penetration. Miller Homes’ expansion into the South West of England through this acquisition positions the company to better serve a broader customer base and meet the increasing demand for quality housing across the region.
