Yorkshire housebuilder Stonebridge Homes has been fully acquired by construction and property group Henry Boot in a multi-stage deal worth up to £65m.
The move means the Leeds-based developer, which operates across Yorkshire and the North East, has come under Henry Boot’s full control after bosses at the £359m revenue group exchange contracts to acquire the 50% of shares it does not already own from its joint venture partner which is owned by Stonebridge boss Darren Stubbs.
Under the agreement, Henry Boot will pay £30m across three fixed payments between January 2025 and January 2030. The total purchase price is linked to the performance of Stonebridge over that period and is capped at £65m.
Henry Boot called the deal a “compelling opportunity” to acquire a high growth business and pointed to Stonebridge’s progress since its inception in 2010 – reporting increased output of an average 25% per year over the last decade. It said that over the five years to the end of December 2023, revenue and operating profit have more than doubled at the housebuilder, reaching £94.4m and £5.9m respectively.
Last year Stonebridge completed 251 properties and expects to deliver 275 this year with total current orderbook of £20m. It has ambitions to build 600 each year, in the medium term. Henry Boot says its balance sheet stands it in good stead to fund and accelerate Stonebridge’s growth
Tim Roberts, chief executive officer of Henry Boot, said: “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 housebuilding 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 says the purchase of Stonebridge will contribute to group return on capital employed, and will boost earnings in the medium term.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
