PwC Corporate Finance advises Stonebridge Projects Ltd on its sale to Henry Boot plc

The UK Corporate Finance team is pleased to announce that it has advised Stonebridge Projects Ltd ("Projects"), on its disposal of its 50% share disposal in Stonebridge Homes Group Ltd ("Stonebridge"), to Henry Boot plc ("Henry Boot"), which currently owns the other 50% of the shares in the business.

The transaction will be effected in three tranches over the next six years, with the total purchase price linked to the performance of Stonebridge over the next five years and based on a multiple of 1.60x Tangible Gross Asset Value ("TGAV").

Stonebridge, established in 2010, is a UK multi-regional housebuilder, focused on delivering premium homes in Yorkshire and the North-East. The business has grown significantly since it was founded, increasing output by c.25% per annum over the past ten years. In 2023, Stonebridge completed 251 homes, with a medium term target of delivering up to 600 new homes per annum.

The disposal to Henry Boot is in line with Henry Boot’s strategy to focus on high quality land, prime property development and premium homes. Stonebridge is a high growth business, and the transaction is expected to create significant shareholder value to Henry Boot through increased exposure in the UK residential market and accretive financial returns over the medium term from a ROCE and earnings perspective.

The PwC Lead Advisory team was led by Simon Hampton, Ben May, James Bailey, Leo Smith, Zahrah Ramtoola and Parth Khandelwal. Peter Cardwell and Martin Haynes provided additional SPA and Accounting and Reporting Advisory support at different stages of the transaction.

Darren Stubbs, Chief Executive / Owner of Stonebridge Projects, said:

“It has been great working with Simon, James, Zahrah and the PwC team on this transaction. PwC leveraged their sector experience in the housebuilding market to guide us through the transaction and helped to achieve a great result for all parties involved.”

Simon Hampton, Partner at PwC, said:

“We are delighted to have advised Darren Stubbs and the team at Stonebridge Projects on this deal. This transaction is a tremendous result for both Stonebridge Projects and Henry Boot and will enable the rapid growth trajectory of Stonebridge.”