Keepmoat sold to private equity for £400m

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​Social housing developer Keepmoat has been sold to private equity giants Sun Capital and former Pizza Express owner TDR Capital for around £400m in a deal that promises to expand the business.

The Doncaster-based firm was sold by Lloyds Banking Group, which became a shareholder following the refinancing of the group in 2012.

Lloyds said it will continue to support the business from a banking perspective.

Keepmoat was the subject of the biggest buyout on record in Yorkshire in 2007 with backing from the Bank of Scotland’s integrated finance (BOSIF) divi- sion.

Completion of the deal is expected by the end of November.

Keepmoat said the private equity firms will invest in the business to support the group’s long-term growth ambitions as it cashes in on the demand for new homes and communities.

Dave Sheridan, Keepmoat’s CEO, said: “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.”

Keepmoat announced revenues of £930m in the year to March 31.

Its homes division sold nearly 2,000 properties and its regeneration arm was boosted by a major private finance initiative contract win in Leeds.

Keepmoat won a £198m scheme last year to refurbish 1,245 properties and create 388 new homes in Leeds in three inner city areas.

Edward Hawkes, partner at Sun Capital, said: “Keepmoat 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, added: “Keepmoat’s vision to be the national, leading service provider and housebuilder was one of the many reasons we were so interested in the organisation.”

Previously, the majority of Keepmoat was owned by Cavendish Square Partners.

The firm was sold for £783m, the region’s largest ever private equity deal, in 2007.

JP Morgan Cazenove acted as financial adviser to Keepmoat’s board of directors.