Henry Boot has agreed to sell Henry Boot Construction (HBC) to PWS Construction Limited (PWS), a company newly formed by the HBC management team, for an initial consideration of £4m. The transaction also provides for additional payments to Henry Boot in the future based on certain performance criteria.
Under PWS ownership, the business will be known as HBC Construction Group. The transaction will offer HBC management greater autonomy to diversify and expand the order book as well as enhance HBC’s position in the construction market, than would be possible if the business remained within Henry Boot.
The deal allows Henry Boot to focus on its strategic priority areas of high quality land, prime property development and premium homes. Henry Boot noted that HBC is not part of the group’s medium term growth strategy and has made only a small contribution to profits. The transaction will also simplify the group’s structure and investment case.
During the year ended 31 December 2024, HBC generated £49.7m of revenue with an operating loss of £2.7m in the consolidated financial statements of the group. Following significant restructuring undertaken, including the appointment of the new management team, and with 94% of this year’s order book secured, it is expected the business should break even for FY 25.
HBC has extensive experience in both the public and private sectors, including major projects such as the £200m regeneration of Barnsley town centre, and The Cocoa Works, a £57m residential development in York.
Tim Roberts, CEO at 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.“
