Slaughter and May is advising Legal & General Group plc on the acquisition of an interest in CALA Group Ltd ('CALA'), the UK's premium major home builder, from Lloyds Banking Group. The acquisition values CALA at £210 million.

Legal & General will acquire a 46.5% equity stake in CALA, as an equal partner with Patron Capital Partners ('Patron'), alongside management who will take a 7% share. The acquisition, which was announced on 18 March 2013, will be financed by £140 million of equity and £70 million of debt.

The transaction involves Legal & General entering into a joint venture agreement with Patron.

Legal & General has identified direct investments as a key driver of growth and the acquisition marks the Group's first direct investment of this kind. The acquisition forms part of a strategy to target socially useful projects (including housing, education, transport and energy sectors) that deliver high rates of return and fit Legal & General's financial and strategic criteria.

The Slaughter and May team is led by corporate and commercial partners Hywel Davies and Robert Chaplin who are supported by associate Simon Staveley-Smith.

Contacts

Corporate and Commercial: Hywel Davies (partner), Robert Chaplin (partner), Simon Staveley-Smith (associate)

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