Henry Boot acquires full ownership of Stonebridge Homes
SHEFFIELD: Henry Boot has announced the acquisition of the remaining 50% share of Stonebridge Homes Group Ltd, making it the sole owner of the premium regional housebuilder. This move allows Henry Boot to fully control a high-growth business in the UK residential market.
The acquisition will be completed in three phases over the next five years, with the total purchase price linked to Stonebridge’s performance. This is in line with Henry Boot’s strategy to focus on high-quality land, prime property development, and premium homes.
“This transaction marks a significant milestone for Henry Boot,” said Tim Roberts, CEO of Henry Boot. “It simplifies our structure and strengthens our position in the UK house-building sector. With the phased, performance-linked consideration, we are confident this acquisition will enhance shareholder value over the medium term.”
Strategic Rationale
Stonebridge has been a high-growth housebuilder in the UK, focusing on premium homes in Yorkshire and the North-East. Since its founding in 2010, the company has increased its output by an average of 25% annually. In the past five years, both revenue and operating profit more than doubled, reaching £94.4 million and £5.9 million respectively. In 2023, Stonebridge completed 251 homes and aims to deliver up to 600 homes annually.
The acquisition aligns with Henry Boot’s strategy of focusing on high-quality land and premium homes. The board expects the acquisition to create significant shareholder value by increasing exposure to the UK residential market, which benefits from positive long-term trends such as population growth and government targets to build 1.5 million new homes over the next five years.
Acquisition Details
The acquisition will be completed in three tranches:
– The first tranche will be completed in January 2025, with Henry Boot acquiring 12.5% of Stonebridge for £10 million, resulting in a majority shareholding of 62.5%.
– The second tranche, acquiring another 12.5%, is expected in January 2026.
– The final tranche, acquiring the remaining 25%, is expected in January 2030.
The total purchase price is linked to Stonebridge’s tangible gross asset value at the time each tranche is completed.
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