SigmaRoc has announced its acquisition of Topcrete Ltd, and its wholly owned subsidiary Allen Concrete Ltd., for an initial cash consideration of £9 million, and a deferred conditional cash consideration of £3.5 million, subject to certain adjustments in respect of completion accounts. The acquisition is expected to be earnings enhancing in the year ended 31 December 2017.
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. For the year ended 28 February 2017, Allen Concrete recorded underlying profit before tax of £1.8m, EBITDA of £2m and consolidated revenue of £5.2m.
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.”
Read the article online at: https://www.worldcement.com/europe-cis/20102017/sigmaroc-acquires-topcrete-ltd-and-allen-concrete-ltd/