Keepmoat to merge with rival

SOCIAL housing developer Keepmoat is to merge with rival Apollo Group to create a £1bn revenue business.

The combined business will be headquartered in Doncaster and be known as the “Keepmoat family of companies”.

In an announcement this morning the companies said their goal was to create a “market leader in community regeneration and social housing”.

Keepmoat chief executive David Blunt will take the same role in the new larger company while Peter Warry, non-executive chairman of Apollo, will lead the new board.

Mr Blunt said: “The bringing together of these two businesses represents a compelling proposition for shareholders, customers and employees alike. 

“In this challenging economic climate we will create a national champion in our market with substantial opportunities for growth.”

Keepmoat and Apollo have been part of the same investment portfolio since 2007 which has in turn been owned by Cavendish Square Partners since July last year. Cavendish is majority owned by private equity investor Coller Capital.

Apollo chief executive Dave Sheridan, who will be responsible for southern regions in the the new company, said: “Operationally this deal is a very positive step forward for both companies.  Together we will be able to offer our customers an unrivalled service that truly differentiates us from the competition. 

“I am very confident in our future prospects together and look forward to reporting on our progress in due course.”