Forterra floated on London Stock Exchange
Company floats with £360 million valuation in bid to take advantage of growing UK housing market
FORTERRA, the UK’s second largest brickmakers, have been admitted to the London Stock Exchange’s in a move that values the company at £360 million. The floatation comes as the company seeks to capitalize on the growing UK housing market.
Forterra (formerly Hanson Building Products) have been owned by an American affiliate of US private equity firm Lone Star Funds since their divestment by HeidelbergCement in March 2015.
This week’s initial public offering comprises the sale of 70 million shares, representing 35% of the total, priced at 180p.
As a leading producer of manufactured masonry products with exclusive focus on the UK market, Forterra say they are only UK manufacturer with a significant offering of both clay bricks and concrete blocks.
According to the company, the UK’s residential new build and residential repair, maintenance and improvement (RMI) markets accounted for approximately 95% of Group revenue in 2015, with the remaining 5% attributed to the UK commercial construction market.
And with the UK population forecast to grow significantly in the coming years, the company expects the current structural undersupply of housing to continue to grow, underpinning future demand for new housing and, therefore, building products.
Stephen Harrison (pictured), chief executive of Forterra, said: ‘We are excited to begin this new period as an independent company with a well-invested and efficient manufacturing base, and the appropriate capital structure to take advantage of the growing UK housing market.’
