Forterra planning £450m London listing

Forterra, a producer of manufactured masonry products, has announced its intention to list on the London Stock Exchange, with admission expected next month.

The company, previously Hanson’s UK building products division, is expected to have a free float of at least 25%, giving it a value of around £450m.

Forterra, for whom housebuilders are a key customer, said that after a period of subdued building volumes, the market outlook was looking favourable in part thanks to a series of government initiatives.

“A recovery in house building activity has been under way since 2013 and the UK house building market is now experiencing a period of steady expansion, although activity levels remain significantly below historic levels.

“With the UK population forecast to grow significantly in the coming years, the structural undersupply of housing is expected to continue to grow, underpinning future demand for new housing and, therefore, building products.”

Chief executive Stephen Harrison 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."

Forterra was acquired by private equity firm Lone Star last year when it bought Hanson’s UK and US building products businesses from HeidelbergCement.