Henry Boot announces that it has agreed to sell the entire issued share capital of Henry Boot Construction (HBC) to PWS Construction Limited (PWS), a company newly formed by the HBC management team, for an initial consideration of GBP4 million (US$5 million), which is being funded by PWS via a vendor loan note issued by Henry Boot. 

The transaction enables the group to concentrate on its core strategic priorities of high-quality land, prime property development, and premium housing. HBC, which has contributed only modestly to overall profits and is not aligned with the group’s medium-term growth plans, was reviewed under several options, including alternative exit strategies and retention. Ultimately, the Board determined that selling HBC to PWS at a price above its net asset value best serves shareholder interests. The sale will also lower the group’s risk profile and reduce its workforce by roughly 21%. For the year ending 31 December 2024, HBC reported revenues of £49.7 million (US$67 million) and an operating loss of £2.7 million (US$3.6 million) within the group’s consolidated accounts. Following its acquisition by PWS, the company will operate as HBC Construction Group. The deal is expected to give HBC’s management more independence to broaden and grow its order book, while strengthening its competitive position in the construction sector—opportunities that would have been more limited under continued group ownership.

The group may receive additional payments if PWS sells all or part of HBC within eight years, or if HBC achieves a net margin above 3% over the next five years. A vendor loan note, expected to be under £4m, will be recorded, with any excess over net assets treated as profit on disposal. Completion is anticipated around year-end 2025.