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Doncaster housebuilder Keepmoat in £400 million takeover talks

Investment group Sun Capital Partners and TDR Capital are reportedly in talks to take over Doncaster-based housebuilder Keepmoat.

Sun Capital Partners, headed by City Financier Hugh Osmond are close to sealing the £400 million deal according to Sky News.

In March to this year, Keepmoat recorded revenue of £930 million after a boost from a major private finance initiative contract win in Leeds, and the potential of the housing market outside London is reportedly a factor in the venture for Sun.

Keepmoat was involved in the development of over 350k properties last year and employs over 3,000 people.

Keepmoat is one of several housebuilders which ended up under the control of Lloyds which remains 25% owned by the taxpayer, after the takeover of HBOS.

The deal will follow Mr Osmond’s involvement in corporate turnarounds, and Sun and TDR have seen off competition from rival bidders including Apollo Management.

Keepmoat had been in Lloyds’ control since 2009 and was later sold to Caird Capital, an investment firm started by the former heads of HBOS’s private equity operation.

Caird then merged Keepmoat with Apollo, another housebuilder, before Lloyds again took a stake in October 2012 as part of a debt-for-equity swap.

This was posted in Bdaily's Members' News section by Clare Burnett .