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L&G unit takes full ownership of UK homebuilder Cala

Legal & General Group Plc, through its Legal & General Capital division, acquired the 52.1% stake in U.K.-based homebuilder Cala Homes that it did not previously own.

The purchase price for the stake was £315 million plus additional transaction costs and financial adjustments to reflect the contribution of prior joint venture partner Patron Capital Partners and management during the period of co-ownership. The total valuation of 100% of the equity in Cala was £605 million.

Cala's revenues have tripled in the past five years, to £748 million in 2017 from £241 million in 2013. L&G noted, adding that Cala's profits rise at a compound annual growth rate of 12% over the past three years.

The insurer reported operating pretax profit for its 47.88% stake in Cala in 2017 of £42.5 million.