Henry Boot has acquired the 50% share in Stonebridge Homes that it does not own for £30m, with the firm now set to own 100% of the housebuilder.

Stonebridge was founded in 2010 and is currently focused on building homes in Yorkshire and the north east.

In the five years to 31 December 2023, its revenue and operating profit have more than doubled, reaching £94.4m and £5.9m respectively.

Henry Boot said the acquisition gives its an opportunity to "increase exposure in the UK residential market", in line with the Government’s target of building 1.5 million homes over the next five year.

It stated that it aligns with its strategy of focusing on "high quality land, prime property development and premium homes".

It added that it is also a "compelling opportunity to increase ownership" in a high growth business, with Stonebridge looking to expand into a new region, the north midlands, over the next 12 months.

The transaction comprises of three tranches of £10m, the first of which is set to be completed in January 2025, and will see Henry Boot acquire 12.5% of Stonebridge.

The second tranche will see the firm acquire a further 12.5% stake in January 2026, with the consideration payable in the 2026 and 2027 financial years, while the final tranche is set to complete in January 2030, with the remaining 25% stake being acquired.

Chief executive officer at Henry Boot, Tim Roberts, concluded: "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, 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."

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