Private equity firms interested in UK contractor Keepmoat

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Private equity firms interested in UK contractor Keepmoat

Private equity firms are bidding to buy housebuilder Keepmoat, a UK-based company with over 100 years experience in community regeneration and housebuilding.

According to local newspapers, private equity funds including Apollo Management (USA)and Onex (Canada) are among the companies involved in the bidding process to acquire the contractor.

Keepmoat's sale, which is being overseen by investment bank JP Morgan, is likely to fetch around £500 million.

The contractor is currently under the control of Lloyds Banking Group, after it acquired the group from HBOS.

Lloyds Banking Group is selling the controlling stake it took in October 2012 in a debt-for-equity swap, which followed Keepmoat's 2011 merger with rival contractor Apollo.

According to sources, Keepmoat could post revenue of £925 million for the year to March 2014.

Keepmoat is currently working on several PFI projects. It is acting a contractor to Together Housing in Pendleton Social Housing PFI project. The project involves the design, financing and refurbishment of 1,270 existing dwellings, and their maintenance over a 30-year concession period, in the Salford area of Manchester.

In March 2013, Solutions for North Tyneside, a consortium including Keepmoat was named as preferred bidder to deliver North Tyneside's Quality Homes for Older People PFI. The consortium will carry out the refurbishment and construction work and will also be responsible for the cleaning, repair and maintenance over the 28 year contract.

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