Private equity firms Sun Capital Partners and TDR Capital have signed a deal to take over social housebuilder Keepmoat.
The firms have formed an agreement to acquire Keepmoat’s holding company Lakeside 1 Limited, in a deal thought to be worth around £400m.
Completion of the deal is expected by the end of November. JP Morgan Cazenove acted as financial adviser to the Keepmoat board.
Under the deal, Lloyds Banking Group, which took control of the company after the bank bought the assets of rival HBOS in 2008, will be selling their equity interest in Keepmoat.
In addition, the group’s senior term debt is expected to reduce from £290m to £260m. Deloitte provided advice around the debt issue.
Sun Capital Partners and TDR Capital fought off competition from rival bidders Apollo Management.
Keepmoat is one of a string of housebuilders that fell under control of Lloyds Banking Group in 2008.
Others included McCarthy & Stone and Cala Homes, which have since been sold or floated on the stock market.
Keepmoat was formed in March 2012 following the merger of Apollo and the Keepmoat Group of companies.
It has 22 regional offices and employs around 3,000 people across the UK.
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 private finance initiative contract win in Leeds.
Keepmoat CEO Dave Sheridan said: “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.”
Sun Capital Partners partner Edward Hawkes said: “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.”
TDR Capital founding partner Stephen Robertson 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.
“We are excited about working together to continue to build on the successes it has achieved.”