Member Article

Doncaster’s Keepmoat acquired by private equity pair

Doncaster-based house builder Keepmoat, has been acquired by private equity firm TDR Capital LLP.

Sun Capital and investment funds managed by TDR Capital LLP signed an agreement to acquire Lakeside 1 Limited, the holding company of Keepmoat.

Completion is expected to occur by the end of November 2014 and is subject to regulatory clearance. J.P. Morgan Cazenove acted as financial adviser to the Keepmoat board of directors.

TDR Capital and Sun Capital are investing in the business to support the long-term growth ambitions of the company.

Lloyds Banking Group, who became a shareholder following the successful refinancing in October 2012, will be selling their equity interest in Keepmoat, but will continue to support the business from a banking perspective.

In addition, the Group’s senior term debt is expected to reduce from £290 million to £260 million; further strengthening the balance sheet. Deloitte provided advice around the debt issue.

In the year to March 2014, Keepmoat recorded revenues of £930 million, 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.

Keepmoat offers a complete solution in creating and maintaining better communities – from building new homes and public buildings, to responsive maintenance and repairs.

Dave Sheridan, Keepmoat CEO, commented: “We are delighted to be entering the next phase in Keepmoat’s development with TDR Capital and Sun Capital.

“This year is already proving to be a strong year for the business and with the support of TDR Capital and Sun Capital, who both have a track record of building value in their portfolio companies, we will have the opportunity to grow the business profitably in the interests of all our stakeholders; our customers and clients; our partners and our suppliers.”

Edward Hawkes, partner at Sun Capital Partners Ltd commented: “We are delighted to be involved with such an impressive team and organisation as Keepmoat.

“It is committed to raising standards in community regeneration and housebuilding across the UK and we are very much looking forward to being part of delivering this commitment.”

Stephen Robertson, founding partner at TDR Capital LLP commented: “Keepmoat’s vision to be the national, leading service provider and house-builder was one of the many reasons we were so interested in the organisation.

“We are excited about working together to continue to build on the successes it has achieved.”

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