Henry Boot Construction (HBC) is being acquired by PWS Construction with the deal funded through a vendor loan note issued by Henry Boot.

PWS is a company newly formed by the management team of HBC.

The company is selling this division to better focus on its “strategic priority areas” that include high quality land, prime property development and premium homes.

HBC is not a part of the group’s medium term growth strategy and has made only a small contribution to group profits.

During 2024, the business generated £49.7m of revenue with an operating loss of £2.7m in the consolidated financial statements of the group.

Following the 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 breakeven for 2025.

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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 the group.

The term of the vendor loan note from Henry Boot to PWS is five years and will carry interest at 2.1%. The group will continue to provide support in the short term under a transitional services agreement, with operational oversight from two Henry Boot representatives on the HBC board until the point when the vendor loan note has been repaid.

 “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,” said Tim Roberts, CEO at Henry Boot.

Elsewhere, it was revealed that Henry Boot had increased its pre-tax profits to £7.8m for the first half of 2025, up from £3.7m for the same period in 2024. Currently, 80% of budgeted sales for the firm in 2025 have been completed.