Boot will acquire the 50% share it does not own from its JV partner in three tranches over the next five years with a basic purchase price of £30m plus performance linked payments.

Tim Roberts, Chief Executive Officer, Henry Boot, said: “This transaction represents an important strategic milestone for Henry Boot, allowing us to acquire full ownership of a high growth builder of premium residential homes that we already know well through our existing 50% share in the business.

“The acquisition of Stonebridge also further cements our position in the UK housebuilding sector, a market which currently benefits from a number of supportive structural and political tailwinds, while at the same time simplifies Henry Boot’s structure.

“The consideration is performance linked, and the phased structure is designed to generate strong returns whilst maintaining gearing within our optimum range of 10-20%. All of this gives us confidence that this transaction will help drive enhanced shareholder value over the medium term and will be a significant part of our plans for growth.”

Stonebridge is currently focussed on delivering premium homes in Yorkshire and the North-East with an annual turnover of £94.4m and is now looking to expand in the North Midlands.