The management team now expects to break even in 2025 with 94% of work already secured.<\/p>\n
Under its new ownership the business will be rebadged as HBC Construction Group, giving managers more freedom to grow the order book.<\/p>\n
Henry Boot will fund the deal with a vendor loan note running for five years at 2.1% over base rate.<\/p>\n
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<\/a><\/div>\n<\/div>\nThe sale marks a major step in Henry Boot\u2019s strategy to concentrate on land, property and housing development, with construction no longer part of its long-term growth plan. The disposal also cuts group headcount by more than a fifth.<\/p>\n
Extra payments could flow back to Henry Boot if HBC delivers profit margins above 3% or is sold again within eight years.<\/p>\n
The transaction is expected to complete at the end of this end.<\/p>\n
The main group will provide temporary support to the contracting business under a transitional services agreement, with operational oversight from two Henry Boot representatives on the HBC board until the point when the sale loan has been repaid.<\/p>\n
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Chief executive Tim Roberts 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. <\/span><\/p>\n “It also<\/span>\u00a0enhances prospects for long term growth with a more focussed portfolio of activities with greater synergies. <\/span><\/p>\n “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.<\/span>“<\/span><\/p>\n \n
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