Keepmoat and Apollo, both market leaders in social housing development and integrated property services across the UK, have announced their intention to combine the two businesses and create a community regeneration and social housing solutions.

The deal will bring together the two complementary businesses, creating a group with enhanced scale and financial strength, underpinned by forecast revenues in excess of £1 billion, diversity of product range, attractive customer base and continuation of long term partnerships with suppliers.

In addition, the enlarged group will benefit from numerous cross selling opportunities with little geographical overlap whilst delivering significant financial synergies. The move will also enable sharing of resources and expertise to reinforce nationwide service delivery for both companies. In particular, Apollo will help to strengthen Keepmoat's maintenance capabilities in the north and Keepmoat will boost Apollo's new build offering in the south.

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The enlarged business strategy will focus on building the combined platform into a fully integrated service offering delivering an unparalleled service to clients.

The combined business will be headquartered in Doncaster with current Keepmoat CEO David Blunt taking up the same position in the enlarged entity and Peter Warry, currently Non-Executive Chairman of Apollo, becoming Non-Executive Chairman. The new business will be branded as the 'Keepmoat family of companies' with Apollo retaining its own brand within this format. It will have a national presence with both Keepmoat and Apollo operating as separate divisions with regional focus. Allen Hickling will be responsible for the northern regions and Dave Sheridan for the southern regions. The remaining Board members will be John Thirlwall (Finance) and Peter Hindley (Homes for private sale). Tom Allison, who has chaired Keepmoat for the past three years, will remain in position until the merger is complete.

David Blunt, CEO Designate, commented: "The bringing together of these two businesses represents a compelling proposition for shareholders, customers and employees alike. In this challenging economic climate we will create a national champion in our market with substantial opportunities for growth."

(CD)