Phased deal worth at least 拢30m
Henry Boot is set to take full ownership of regional housebuilder Stonebridge.
The contractor has exchanged contracts to acquire the 50% share it did not already own from its joint venture partner.
The deal has a tranche structure which will see Henry Boot take ownership of Leeds-based Stonebridge over the course of five years, with the total purchase price linked to the housebuilder鈥檚 performance over the period.
Tim Roberts, chief executive officer at Henry Boot, said: 鈥淭his 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.
鈥淭he acquisition of Stonebridge also further cements our position in the UK housebuilding sector, a market which currently benefits from a number of supportive structural and political tailwinds, while at the same time simplifies Henry Boot鈥檚 structure.
鈥淭he consideration is performance linked, and the phased structure is designed to generate strong returns whilst maintaining gearing within our optimum range of 10-20%.鈥�
Anticipated fixed payments will total 拢30m, with the additional payments linked to the housebuilder鈥檚 performance over the period.
The purchase price is linked to a multiple of 1.6x of the tangible gross asset value of Stonebridge at the time each tranche is completed.
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鈥淎ll 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,鈥� said Roberts.
Founded in 2010, Stonebridge is focused on delivering homes in Yorkshire and the North East. In 2023, it completed 251 homes and turned over 拢94m.
Stonebridge has aspirations of expanding into a third region, the North Midlands, over the next 12 months. It has a medium-term target of selling 600 homes a year annually.
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