LONDON: British property and construction group Henry Boot (BOOT.L) said on Tuesday it has agreed to sell its construction division, Henry Boot Construction (HBC), to PWS Construction Limited, a newly formed entity led by HBC’s management team, for an initial consideration of £4.0 million.
The deal, funded via a vendor loan note issued by Henry Boot, includes provisions for future performance-based payments and profit-sharing mechanisms. Under the new ownership, the business will operate as HBC Construction Group.
Henry Boot said the disposal aligns with its strategic focus on high-quality land, prime property development, and premium homes. HBC, which posted a £2.7 million operating loss on £49.7 million revenue in 2024, was not part of the group’s medium-term growth strategy.
“The sale of HBC allows Henry Boot to further its strategic focus,” CEO Tim Roberts said. “While HBC’s contribution to the group is relatively small, it is a well-established business with an excellent management team.”
The transaction, expected to complete by year-end 2025, will reduce group headcount by around 21% and simplify its investment case. Henry Boot will retain short-term oversight via a transitional services agreement and board representation until the loan note is repaid.
Additional consideration may be payable if PWS sells a material part of HBC within eight years or if the business exceeds a 3.0% net margin over the next five years.