SigmaRoc PLC SigmaRoc acquisition of Topcrete Limited (0187U)
October 19 2017 - 2:00AM
UK Regulatory
TIDMSRC
RNS Number : 0187U
SigmaRoc PLC
19 October 2017
SigmaRoc plc / EPIC: SRC / Market: AIM / Sector: Construction
Materials
19 October 2017
SigmaRoc plc
('SigmaRoc' or the 'Company')
Acquisition of Topcrete Limited for GBP9m and a deferred
consideration of GBP3.5m
SigmaRoc plc, the buy-and-build construction materials group, is
pleased to announce the acquisition of Topcrete Limited and its
wholly owned subsidiary Allen Concrete Limited ('Allen Concrete'),
the specialist precast concrete producer, for an initial cash
consideration of GBP9m and a deferred conditional cash
consideration of GBP3.5m, subject to certain adjustments in respect
of completion accounts. The acquisition is expected to be earnings
enhancing in the year ending 31 December 2017.
Highlights:
-- Acquisition of sought after specialist wetcast concrete products business;
-- EBITDA of GBP2m and consolidated revenue of GBP5.2m for year ended 28 February 2017;
-- Initial cash consideration of GBP9m;
-- Conditional deferred consideration of GBP3.5m ('Deferred Consideration');
-- Strong pipeline for further acquisitions with advanced
negotiations on another potentially imminent value accretive
transaction.
Founded over 60 years ago, Allen Concrete is a specialist
precast concrete producer, with operations in London and the
Midlands. Allen Concrete is known for its high quality wetcast and
bespoke concrete products. It supplies a wide range of clients
ranging from builders' merchants to major infrastructure operators,
including Network Rail. Allen Concrete has a well established
footprint, including a freehold production site in the Midlands,
and it owns a further freehold industrial site in London of
significant value.
For the year ended 28 February 2017, Allen Concrete recorded
underlying profit before tax of GBP1.8m, EBITDA of GBP2m and
consolidated revenue of GBP5.2m. The business employs 36 staff
across its two sites and is well respected in the market for its
high quality products.
Allen Concrete has been acquired from Mr Roy Topp and Mr Peter
Farenden (ca. 64% and ca.14% owners respectively) and several other
shareholders. The consideration is being satisfied by the payment
of GBP9m in cash, funded through the Company's acquisition existing
term facility with Santander. The Deferred Consideration will be
settled over the 12 months following completion, conditional on
Messrs Topp and Farenden remaining with the group and providing
certain agreed transitional services. The transaction will also
release GBP0.5m in working capital for the SigmaRoc group.
The acquisition of Allen Concrete builds on SigmaRoc's
successful acquisition of Ronez Limited ('Ronez'), the Channel
Island construction materials producer, in January, and the
acquisition of a dry bulk carrier ship in April, to create the
Company's shipping and trading business. SigmaRoc's pipeline for
future transactions remains strong.
David Barrett, Chairman, commented:
"We are very pleased to welcome Allen Concrete to the SigmaRoc
group, it has a solid history and is highly regarded in its sector.
The acquisition fits well with our strategy and builds on the
successful platform we have created since the integration of Ronez.
This is another step in our ambition to generate shareholder value,
while preserving the unique identity of the businesses we buy."
Max Vermorken, CEO, commented:
"Allen Concrete is another excellent example of the type of
business we are seeking to acquire, as we roll out our
buy-and-build strategy. It is a high calibre operation with a
market leading position, that is driven by its specialist products
and a workforce dedicated to quality. Allen Concrete is well placed
for further organic growth, as well as bolt-on activities centred
around its industrial landholdings in London, all of which will
further boost SigmaRoc's EBITDA."
Enquiries:
Tel: +44(0)207 002
SigmaRoc 1080
Max Vermorken, CEO
Strand Hanson (Nominated Tel: +44(0)207 409
and Financial adviser) 3494
James Spinney / James Dance
Zeus Capital Limited (Joint Tel: +44(0)203 829
Broker) 5000
Rob Collins / Alex Wood
Tel: +44(0)203 207
Berenberg (Joint Broker) 7800
Ben Wright / Mark Whitmore
/ Laure Fine
Temple Bar Advisory (Financial Tel: +44(0)207 002
PR adviser) 1486
Ed Orlebar / Tom Allison
/ Alycia MacAskill sigmaroc@templebaradvisory.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via Regulatory Information
Service, this inside information is now considered to be in the
public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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