Legal & General sells housebuilder Cala to private equity groups

Who is Cala?

Cala Group is a leading UK homebuilder with a focus on the Scottish market. The company was founded in 1875 and is headquartered in Edinburgh. Cala has a strong reputation for building high-quality homes and has won numerous awards for its work.

Who bought Cala Group?

In December 2022, it was announced that Legal & General had agreed to sell Cala Group to a consortium of private equity firms led by Lone Star Funds. The sale was completed in early 2023.

Lone Star's plans for Cala Group

Lone Star Funds is a global private equity firm with a focus on real estate investments. The firm has a long track record of investing in and improving businesses. It is likely that Lone Star will invest in Cala Group to help the company grow and expand its operations.

Why did Legal & General sell Cala Group?

Legal & General did not disclose the specific reasons for selling Cala Group. However, it is likely that the sale was part of a broader strategy to focus on its core businesses. Legal & General is a major provider of insurance and financial services, and it may have felt that Cala Group was no longer a core part of its business.

What does the sale mean for Cala Group employees?

It is too early to say what the sale will mean for Cala Group employees. However, it is likely that Lone Star Funds will want to keep the current management team in place, as they have a strong track record of success.

What does the sale mean for the UK housing market?

The sale of Cala Group is unlikely to have a major impact on the UK housing market. However, it could lead to increased competition in the Scottish homebuilding market, as Lone Star Funds is likely to invest in Cala Group to help the company grow.

Conclusion

The sale of Cala Group to private equity firm Lone Star Funds is a significant event in the UK housing market. It is likely that Lone Star will invest in Cala Group to help the company expand its operations, which could lead to increased competition in the Scottish homebuilding market. However, it is too early to say what the sale will mean for Cala Group employees or the UK housing market as a whole.