Lone Star sells 53% of Forterra for £206m

Kenny Wastell
24 April 2017

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Lone Star Funds has sold a 53% stake in listed UK brick-maker Forterra for around ТЃ206m, via a placement on the London Stock Exchange.

The transaction marks a final exit for the GP, which said in a statement that it had increased the size of the placing as a result of strong investor demand. The GP had initially intended to sell 70 million shares – equivalent to a 35% stake - priced at 195 pence apiece, but ended up selling 105.7 million shares via the process.

The divestment comes a year after Lone Star floated the business with a market cap of £360m. The GP sold a 35% stake via the IPO, with shares priced at 180 pence apiece. The latest placement gives Forterra a market cap of around £389m.

Numis Securities and Peel Hunt acted as joint bookrunners in the placing, while Goodbody Stockbrokers acted as lead manager.

Previous investment
Lone Star acquired Forterra (then known as Hanson Building Products) from former German parent Heidelberg Cement for $1.4bn in December 2014.

Company
Established in 2014 and headquartered in Northampton, Forterra produces bricks and aircrete blocks for the residential new-build sector, renovation, maintenance and improvements (RMI), and the commercial construction market. In 2016, it generated a turnover of £294.5m with £70.6m of EBITDA.

Forterra has a headcount of 1,500 across 17 manufacturing facilities. Its clients include builders' merchants, residential homebuilders, specialist brick merchants, contractors and subcontractors.

People
Forterra – Stephen Harrison (CEO).