Keepmoat has announced that Sun Capital and investment funds managed by TDR Capital LLP have signed an agreement to acquire Lakeside 1 Limited, the holding company of  UK-based housing contractor 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 will invest in the business to support the long-term growth ambitions of the company.

As part of the transaction, 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.