SigmaRoc plc has finalised the financing of its latest acquisition, CCP Building Products Ltd. Located in the UK, CCP is an integrated concrete products and quarrying group.
Totalling £12 million at a share price of 41 pence, the raise has received strong support from both existing and new shareholders. The purchase of the entire issued share capital of CCP has been agreed on a conditional basis for an initial consideration of £15.2 million in cash, shares on a debt free/cash free basis, and further consideration based, in part, on the EBITDA growth of CCP over the next three financial years.
CCP has five operations, including the production of blocks, aggregates, flag stones, and the trading of cement and aggregates. For the 12 months to 31 August 2018, CCP reported an unaudited revenue of £20.9 million, EBITDA of £2 million, and adjusted EBITDA of £2.6 million.
It is thought that the integration of CCP into the SigmaRoc group will be accretive to value, bringing an increased asset footprint with high barriers to entry, increased mineral reserves and resources, a 20% regional market share, and consistent organic EBITDA growth and cash flow creation. It is expected that the proposed acquisition will be EPS accretive in its first full year. This acquisition follows the latest trading update, which reports a 52% revenue increase for 2018.
The acquisition is a strategic fit to SigmaRoc’s precast platform, spanning across the UK from the Southeast to Northwest. Following the completion of the CCP acquisition and the expansion of its available debt capital, SigmaRoc now plans to focus its attention on the expansion of its third platform across Wales and the Southwest of England. The company’s first acquisition was confirmed in its annual general meeting on 27 December 2018.
The company is currently involved in a number of separate discussions that vary from early stage to more detailed, relating to several potential mineral asset acquisition targets. Based on information to date and subject to detailed due diligence, the revenues of these assets range between £4 million and £25 million, with current EBITDA margins of between 10% and 20%, and net assets ranging up to £14 million.
Read the article online at: https://www.worldcement.com/europe-cis/28012019/new-acquisition-for-sigmaroc/