Lone Star set for £450m Forterra IPO

Amedeo Goria
31 March 2016

Tweet
Facebook
LinkedIn
Google plus
Send to

US-based private equity firm Lone Star intends to float UK-based brick manufacturer Forterra on the LSE, aiming for a £450m valuation.

Forterra's free float will be 25%, listing with a £450m market cap.

The IPO, expected in April 2016, will provide a swift partial exit for Lone Star after a six-month holding period. It follows the flotation of Forterra's main competitor, Ibstock, which was valued at £770.5m when listed by buyout house Bain Capital in October 2015.

The float comprises Forterra's UK-based arm and will take place on the London Stock Exchange. According to press reports, the listing would value Forterra at an EV of £600m.

Credit Suisse, Deutsche Bank and Citigroup have been appointed as bookrunners.

Lone Star acquired a majority stake in Forterra – then known as Hanson Building Products – from former German parent Heidelberg Cement for $1.4bn in December 2014.

Founded in 2014 and headquartered in Northampton, Forterra produces clay bricks and aircrete blocks. The company is the sole producer of fletton red bricks.

The company has 18 production facilities and 12 clay quarries in the UK. It generates 95% if its revenues in the UK and has 1,600 employees. Forterra generated a turnover of £290m and a £71m EBITDA in 2015, increasing by 8.2% and 29% respectively on the 2014 figures.