Henry Boot to Acquire 100% of Stonebridge Homes

In a release on Thursday, Henry Boot (LON: BOOT) said it has struck a deal to take full ownership of Stonebridge Homes Group. 

The company revealed it has agreed to acquire the remaining 50% stake of the regional premium housebuilder that it does not currently own from its joint venture partner. 

The acquisition is structured in three tranches over five years. Henry Boot said Stonebridge has “already been identified as an area of substantial expansion” to help the company achieve its growth target.

The first tranche, costing £10 million for a 12.5% stake, is set to be completed in January 2025, increasing Henry Boot's shareholding to 62.5%. There will be a further 12.5% tranche completed in January 2026, with a final 25% tranche to follow in 2030.

“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%,” said Tim Roberts, Chief Executive Officer of Henry Boot. 

Stonebridge has seen significant growth, doubling its revenue and operating profit over the last five years. 

In 2023, the company delivered 251 homes and aims to reach 600 annual completions in the medium term. With a current order book of £20 million, Stonebridge plans further regional expansion into the North Midlands.

Roberts added: “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 U.K. house-building sector.”