Private equity firms buy UK housebuilder Keepmoat for €500m

UK housebuilder Keepmoat has been bought by private equity firms Sun Capital and TDR Capital from state-backed Lloyds bank for around £400 mln (€500 mln).

Lloyds, which is 25% owned by the UK government, inherited Keepmoat debt when it took over HBOS during the credit crunch, before taking over the Doncaster-based housebuilder in 2012 in a debt-for-equity swap.

The bank is now in a four-year programme of selling off non-core assets. In a statement, Lloyds said: 'The sale sees us successfully exit our equity position on Keepmoat, having been a lender to the company for nearly a decade. We are also pleased that we will continue to support them with banking facilities going forward.'

Keepmoat CEO Dave Sheridan added: '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.'