HBOS has continued its march into the housing sector by backing the £410m management buyout of social housing maintenance company Apollo.
HBOS will take a 20.5% stake, with management and employees holding 79.5%. The buyout is being led by Gary Couch, Apollo’s chief executive. It will enable Lloyds TSB Development Capital (LDC), which backed a buyout of the company last year, to recoup its investment.
The deal is the latest move by HBOS in the housing market, after takeovers of Crest Nicholson and McCarthy & Stone. The bank is also thought to be interested in Keepmoat, which is valued at £700m.
Couch said: “The new structure and the expanded shareholding will provide 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.”
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