Henry Boot to acquire Stonebridge Homes
The construction company will obtain the remaining 50% stake in the firm over five years.
The total purchase price will be linked to the performance of Stonebridge over this period, and is in line with the group’s strategy to focus on high quality land, prime property development, and premium homes.
Tim Roberts, chief executive at Henry Boot, commented: “This transaction represents an important strategic milestone for Henry Boot, allowing us to acquire full ownership of a high growth builder of premium residential homes that we already know well through our existing 50% share in the business.
“The acquisition of Stonebridge also further cements our position in the UK house-building sector, a market which currently benefits from a number of supportive structural and political tailwinds, while at the same time simplifies Henry Boot’s structure.
“The consideration is performance linked, and the phased structure is designed to generate strong returns whilst maintaining gearing within our optimum range of 10-20%.
“All of this gives us confidence that this transaction will help drive enhanced shareholder value over the medium term and will be a significant part of our plans for growth.”
