<p><span>Kier is to sell its housing division to Foster BidCo, a newly formed company, for £110 million.</span></p><p><span>Foster BidCo is owned by Guy Hands, founder of private equity firm Terra Firma. The new business has paid a non-refundable deposit of £40 million for Kier Living, which will be held in escrow and released on completion of the sale. </span></p><p><span>The sale is expected to complete before mid-June.</span></p><p><span>“There will be additional payments made on completion to cover, among other things, Kier and its subsidiary and associated undertakings, providing working capital funding to Kier Living in the period from 1 July 2020 until completion,” Kier said.</span></p><p><span>The construction and infrastructure services company has been attempting to sell Kier Living, its housebuilding division, since 2019 in response to financial difficulties. It was decided that the business did not align well operationally with other parts of the group, requiring “significant ongoing funding” to achieve future growth.</span></p><p><span>The Kier board said the sale recognised Kier Living’s strategic value, with the transaction representing “the best interests of shareholders and other stakeholders”. Among other points, it would notably reduce the group’s net debt, reduce the volatility of its working capital, and remove the capital needed for land acquisitions to keep Kier …