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Cala bosses in line for windfall of up to £42m after L&G deal

Lucy Burton
Cala Homes boss Alan Brown said the investment was a

The bosses behind housebuilder Cala Homes are in line for a windfall of up to £42m after Legal & General gained full ownership of the group.

The British insurance giant has agreed to pay £315m for the remaining 52.1pc of the company that it didn’t already own. The deal comes five years after it first snapped up a chunk of Cala from Lloyds Banking Group alongside property investor Patron Capital Partners.

The move values the company at £605m, gifting the managing shareholders - who are understood to own around 7pc of the business - a jackpot of up to £42.3m between them. The FTSE 100 insurer has also bought Patron's stake as part of the deal.

Set up in 1875 as the City of Aberdeen Land Association, Cala was the first Scottish company listed on the London Stock Exchange. It has seen its revenues grow threefold under Legal & General and Patron’s ownership - from £241m in 2013 to £748m in 2017.

Cala chief executive Alan Brown said the investment was “a fantastic endorsement of our growth potential" from a blue-chip investor.