UK residential developer Henry Boot has announced it is to take full ownership of premium regional housebuilder Stonebridge Homes Group, by acquiring the outstanding 50% share in the business.
Henry Boot, which already owns a 50% stake in Stonebridge, has agreed to acquire the outstanding shares from its JV partner.
The transaction will be undertaken in three tranches over the next five years, with anticipated fixed payments totalling £30 mln (€37 mln) and additional payments linked to Stonebridge’s performance.
Tim Roberts, CEO, 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.’
Henry Boot described Stonebridge as a ‘high-growth UK multi regional housebuilder’ which is currently focussed on delivering premium homes in Yorkshire and the North-East.
The business has grown significantly since it was founded in 2010, increasing output by an average 25% per annum. over the past 10 years. In addition, in the five years ending 31 December 2023, both revenue and operating profit more than doubled, reaching £94.4 mln and £5.9 mln, respectively.
In 2023 Stonebridge completed 251 homes and has a medium-term target of delivering up to 600 new homes annually.
