Henry Boot has announced plans to take a 100 per cent stake in premium regional housebuilder, Stonebridge Homes Group Ltd.
The contractor has made a deal with joint venture partner Stonebridge Projects Ltd, to acquire the remaining 50 per cent share of the housebuilder it does not own.
Stonebridge Homes is a high growth UK multi-regional housebuilder, focussed on delivering premium properties in Yorkshire and the North East.
The business has grown significantly since it was founded in 2010, increasing output by an average of 25 per cent per annum over the past 10 years.
In the five years ended 31 December 2023, Stonebridge’s revenue and operating profit more than doubled, reaching £94.4 million and £5.9 million, respectively.
Last year Stonebridge completed 251 homes and has a medium-term target of delivering up to 600 new homes annually.
“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 per cent share in the business,” said Tim Roberts, Henry Boot CEO.
“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 deal, advised by Peel Hunt, is structured to complete in three tranches over the next five years, subject to Stonebridge’s performance over this period.
It also aligns with Henry Boot’s plan to focus on high quality land, prime property development and premium homes.
Stonebridge Projects is the joint venture partner selling its 50 per cent shareholding in Stonebridge Homes.
Roberts added: “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 per cent.
“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.”
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