Henry Boot has agreed to sell its construction division, Henry Boot Construction (HBC), to PWS Construction (PWS), a company newly formed by the HBC management team, for an initial consideration of £4m.
The transaction, which is being funded by PWS via a vendor loan note issued by Henry Boot, also provides for additional payments to the group in the future based on certain performance criteria.
Having considered a variety of options for HBC, including alternative exit routes and retaining the division within the group, the Henry Boot board concluded that the interests of shareholders would be best served by disposing of HBC to PWS at a price in excess of its net assets.
During the year ended 31 December 2024, HBC generated £49.7m of revenue with an operating loss of £2.7m. Following a restructuring under the new management it is expected the business should break even for the 2025 financial year. Under PWS’s ownership, the business will be known as HBC Construction Group.
Tim Roberts, CEO of Henry Boot, said: “The sale of HBC which we are announcing today allows Henry Boot to further its strategic focus on high quality land, prime property development and premium homes. It also enhances prospects for long term growth with a more focussed portfolio of activities with greater synergies. While HBC’s contribution to the group is relatively small, it is a well established business with a strong track record of delivery and an excellent management team and we wish them well for the future.”
Lee Powell, managing director of HBC Construction Group, added: “Today’s transaction represents a hugely exciting opportunity for everyone at HBC as well as for our valued clients and stakeholders. After an extremely long association with Henry Boot, we at PWS have a clear plan for growth as an independent business while ensuring we maintain our focus on excellent customer service and delivery. We would like to thank Tim and the entire team at Henry Boot for their support in facilitating this transaction.”
