UPDATE 1-Taylor Wimpey sells North American business

* Sells U.S. and Canada business for $955 mln

* Buyer TMM Holdings controlled by TPG affiliated funds

* Taylor Wimpey to use cash to cut debt, pension deficit

(Adds details, background)

LONDON, March 31 (Reuters) – British housebuilder Taylor
Wimpey (TW.L: Quote, Profile, Research) has sold its North American business to TMM
Holdings for $955 million to cuts its debt and pension deficit,
as well as focus on its core UK housing business.

“The sale is a significant step towards our goal of becoming
a UK focused homebuilder,” Taylor Wimpey’s Chief Executive Pete
Redfern said.

“The sale will provide us with a strengthened balance sheet
and increased financial capacity to invest in the UK and to
pursue our strategic aims of focusing on margin growth.”

Taylor Wimpey, Britain’s third largest homebuilder by value,
said the deal included the sale of Taylor Woodrow Holdings
(USA), Inc. and Taylor Wimpey Holdings of Canada.

TMM Holdings is a partnership controlled by investment funds
affiliated with TPG Capital, Oaktree Capital Management and JH
Investments and its subsidiaries.

The British builder said the cash would be used to reduce
its borrowings and pension deficit.
(Reporting by Rhys Jones; editing by Mark Potter)

UPDATE 1-Taylor Wimpey sells North American business