Masonry, brick and block producer Forterra has announced its intention to float on the London Stock Exchange.
The Company expects that this will occur in or around April 2016.
The company, formerly known as Hanson Building Products, has the number two slot in the UK market for clay bricks and aircrete blocks, and and is the sole manufacturer of the iconic Fletton brick sold under the London Brick® brand.
In 2015 the group turned over 290m; EBITDA4 was £71m.
Following the 2008 economic downturn, the group heavily streamlined its production footprint, with the closure of many older, smaller and less efficient facilities. At the same time, the Group invested £55m in its state-of-the-art Measham facility, the largest, most modern and fully automated soft mud brick manufacturing facility in the UK.
As a result, the group now believes it has production scale advantages over its key competitors in the brick market.
Stephen Harrison, Chief Executive of Forterra, said: “As a leading, long-established producer of building materials focused solely on the UK, we are excited to begin this new period as an independent company with a listing on the London Stock Exchange. The fundamentals of our industry are attractive and with our efficient manufacturing base, strong positions across all product categories, long-standing customer relationships, and significant scope for future capacity expansion, Forterra is very well placed for the future. Listing as an independent business is the next step in realising the significant potential that we see for Forterra and delivering on our plans for sustainable and profitable growth.”
Paul Lester, Chairman of Forterra, said: “We have a highly capable executive team and have assembled a strong Board with significant sector and operational experience, and a clear strategy for growth. Forterra has a robust and resilient business model, a proven track record, a well-invested and efficient manufacturing base, and well-balanced exposure between the new build and RMI residential markets. I am delighted to be chairing Forterra as we embark on the next stage of our development as a public company and look forward with confidence to creating value for our shareholders.”