With the housing business being up for sale since 2019, after the CEO, Andrew Davies deciding it was no longer the core of the operation, the living arm has now been bought by Foster BidCo, a newly formed company, for £110 million and is expected to complete before mid-June.
Foster BidCo, who have paid a non-refundable deposit of £40 million for Kier Living, is owned by the founder of Terra Firma, a private equity investment firm.
Dave Bridges, the current divisional CEO will remain running the business along with the existing leadership team and the division will be re-named Tilia Homes once Kier’s shareholders have appproved the sale.
In a January trading update Kier said average month-end debt for the first half would be around £436m.
With the sale and business being refreshed, this offers significant growth potential with the acquisition being equity funded and the ability to compete in the land market will be enhanced.
Commenting on the sale in a Stock Exchange announcement , Davies said: “The actions we have taken over the last two years have created a strong operational platform for sustainable profitable growth and free cash flow.
“The disposal of Kier Living delivers another key milestone in the group’s strategy to simplify the business and strengthen its balance sheet.”