Private equity pair swoop for Keepmoat
TWO private equity firms have agreed to aquire Yorkshire-based social housing contractor Keepmoat.
Sun Capital and investment funds managed by TDR Capital signed an agreement to acquire Lakeside 1 Limited, the holding company of Keepmoat.
Completion is expected by the end of November 2014 and is subject to regulatory clearance.
Lloyds Banking Group, which became a shareholder following the refinancing in 2012, will sell its equity interest in the Doncaster-based company but will continue to support the business from a banking perspective.
Keepmoat’s senior term debt is expected to reduce from £290m to £260m.
The company’s areas of expertise include new build homes, community regeneration, responsive maintenance, retirement solutions and sustainability. It has 22 regional offices and employs more than 3,000 staff.
In the year to March 2014, Keepmoat recorded revenues of £930m, with nearly 2,000 properties sold by its homes division and its regeneration arm boosted by a major private finance initiative contract win in Leeds.
Deloitte provided debt advice and transaction support (vendor due diligence).
Speaking in March this year following the Budget, Keepmoat CEO Dave Sheridan told TheBusinessDesk.com that the company is looking forward to one of its best ever years as it experiences double digit growth in house construction.
Over the 2014/15 financial year, Keepmoat plans to build more much needed new build houses – volumes will be up by 30% this year to 2,000 homes. He also said the firm plans to employ another 100 apprentices over the next 12 months.
