Deal will offer firm a presence in ‘exciting and growing market’
Henry Boot, the listed Sheffield-based construction firm, has entered the social housebuilding sector by buying a majority stake in Starfish Commercial, a multi-tenure housing contractor.
Financial details of the deal were not revealed, although Boot said the consideration was a “nominal sum”.
Founded 10 years ago by chief executive Martin Gerrelli, Derby-based Starfish’s activities include building homes for local authorities and housing associations.
It also builds sustainable homes through its Hilbre Homes joint venture with Magenta Living.
Simon Carr, managing director of Henry Boot Construction, said the firm believed it could boost Starfish’s prospects “and continue to deliver high quality housing for both its existing clients and for new partners.
“Further, we also believe this acquisition will provide a presence in a very exciting and growing market that is an excellent fit for us,” he added.
Boot said it would invest in and support Starfish “to enable it to continue providing its current order book and to grow its business with a future pipeline of opportunities”.
In April Starfish began work to build 59 sustainable homes at Leopold Street, Leeds (pictured), with partners Unity Housing and funding group ChaCo.
Henry Boot has also appointed former British Land director Tim Roberts as its new chief executive.
Roberts takes up his new post on 1 January next year, replacing incumbent John Sutcliffe, who is due to retire from the company’s board after its AGM in May 2020.
In March Henry Boot, whose housebuilding activities are centred around its Stonebridge Homes operation, announced a pre-tax profit for 2018 of £49m, down 12%, on turnover of £397m, down 3%.
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