Bank of Scotland Corporate has backed the £783m management buyout of community regeneration company Keepmoat.
Through its Homes division, Doncaster-based Keepmoat specialises in the construction of affordable homes predominantly in the North of England and the Midlands. Its Regeneration division, comprising Bramall Construction and Frank Haslam Milan, specialises in the refurbishment and construction of social housing.
Keepmoat has delivered or improved more than 34,000 homes in the last 12 months. This equates to one home being handed over every three minutes, effecting the lives of 100,000 residents.
The company is forecasting significant growth on the back of UK Prime Minister Gordon Brown's recent pledge to spend £6.5bn on social housing and at least £8bn on affordable homes during the next three years.
“Keepmost is simply a fantastic business,” said Bank of Scotland's Donald Fowler. “This transaction represents an excellent opportuntity for us to invest in a business which has grown significantly and consistently outperformed the market through its unrivalled track record of creating partnerships with the public sector and positioning itself at the forefont of the government's plans for commmunity regeneration.”
Bank of Scotland has taken a minority position in the business, providing an integrated debt and equity package.
The deal represents an exit for Terry Bramall and Dick Watson who have been the principal shareholders for over 35 years, during which time the business has grown to more than £535m in turnover, with an order book of £3bn.