Business has been up for sale since summer 2019
Kier has agreed to sell its housing arm for 拢110m.
The contractor, which is due to report its interim results on Wednesday next week, has been trying to get rid of its Kier Living business since summer 2019 when then new chief executive Andrew Davies decided it was no longer core.
The Kier Living business has now been bought by Terra Firma, a private equity investment firm.
Commenting on the sale in a Stock Exchange announcement this afternoon, Davies said: 鈥淭he actions we have taken over the last two years have created a strong operational platform for sustainable profitable growth and free cash flow.
鈥淭he disposal of Kier Living delivers another key milestone in the group鈥檚 strategy to simplify the business and strengthen its balance sheet.鈥�
Kier said the deal would facilitate a material reduction in its debt and reduce the 鈥渧olatility鈥� of its working capital.
In a January trading update, Kier said average month-end debt for the first half would be around 拢436m.
Kier said Terra Firma had paid a non-refundable deposit of 拢40m, held in escrow and to be released on completion.
Once Kier鈥檚 shareholders have approved the sale the housing business will be renamed Tilia Homes.
The business will continue to be run by its existing senior leadership team including the division鈥檚 chief executive David Bridges.
Guy Hands, chairman and chief investment officer at Terra Firma, said: 鈥淲e believe the business, under a new, refreshed brand, has significant growt