The management at the social housing specialist will remain in place with Gary Couch as chief executive

HBOS has backed a management buyout of social housing specialist Apollo Group in a deal valuing the company at £410m.

The deal is the latest move by HBOS in the housing market, following its takeovers of Crest Nicholson and McCarthy & Stone. The company is also thought to be interested in Apollo’s rival Keepmoat.

The deal is a secondary buyout following a deal backed by Lloyds Development Capital last year. It will see LDC exit their stake, with management and employees holding a 79.5% equity stake in the company, and HBOS holding the remaining 20.5%. The management team will continue in their existing roles, with Gary Couch as chief executive and Gavin Simonds as non-executive chairman.

Gary Couch, chief executive officer of Apollo Group, said: "The new structure and the expanded shareholding will provide significant benefits to our customers and our staff. We have had an excellent relationship with LDC and we look forward to continuing the success with Bank of Scotland".