Acquisition of Belgian concrete assets

RNS Number : 5719U

SigmaRoc PLC

07 April 2021

 

7 April 2021

(EPIC: SRC / Market: AIM / Sector: Construction Materials)

SIGMAROC PLC

  ( ' SigmaRoc ' , the 'Company' or the 'Group' )

Acquisition of Belgian concrete assets

Establishment of a second European heavy side construction materials platform

SigmaRoc, the AIM quoted construction materials group, is pleased to provide the following updates:

Acquisitions of B-Mix Beton and Casters Beton for a total consideration of €13m:

In line with its stated strategy, the Group has completed the acquisitions of B-Mix Beton NV, J&G Overslag en Kraanbedrijf BV and TOP POMPING NV (collectively 'B-Mix'), as well as Casters Beton NV ('Casters') from Groep Janssens N.V. for a combined cash consideration of €13m (together, the 'Acquisitions'). B-Mix, located in Tessenderloo, and Casters, located in Genk, operate four concrete plants, producing around 250,000 cubic meters annually. In addition, the B-Mix business includes quayside operations along the Albert Canal which links the cities of Antwerp and Liege and the rivers Scheldt and Meuse.

In total, the businesses generated a turnover of €22m, EBITDA of €3.3m and a net profit of €1.5m in the year ended 31 December 2020, with net assets of €5.9m. The Acquisitions will be immediately enhancing to the Group's underlying earnings and will be funded from the net cash proceeds of  Group's December 2020 equity fundraising.

Creation of New European Platforms:

Following the Acquisitions and the creation of the Granulats du Hainaut ('GDH') aggregates brand, as announced on 26 March 2021, SigmaRoc has decided to separate its European heavy-side materials operations into two separate platforms.

Carrieres du Hainaut ('CDH') will continue as a Europe wide dimension stone platform under Managing Director Christophe Huyghebaert, turning over approximately €44m per year.

A new integrated concrete and construction aggregates platform will be created to include GDH, Stone Holdings, B-Mix and Casters. The new platform will be managed by Emmanuel Maes and Pascal Lesoinne, with initial annual sales of around €36m per year. SigmaRoc's combined annual turnover in Continental Europe will therefore grow to approximately €80m per year.

Option to acquire 11ha of quayside industrial land:

Alongside the Acquisitions, SigmaRoc is also pleased to announce it has entered into an option agreement (the 'Option') with JABO N.V., granting it the right to acquire 11 hectares of quayside industrial land in Tessenderloo, for a consideration of €9m. The land subject to the Option includes approximately 260m of quayside along the Albert Canal, one of the busiest national shipping lanes in Belgium, which houses the B-Mix concrete business, as well as a significant unutilised area.

Should the Option be exercised, SigmaRoc would continue to utilise approximately 4 hectares for the B-Mix business and is currently exploring opportunities to utilise the remaining land as part of its strategy for further expansion in the Belgian market. Should opportunities not be identified which meet the Group's investment criteria, the sale or development of the excess land would be considered.

David Barrett, Chairman of SigmaRoc, commented:

"The combination of B-Mix and Casters is a very attractive opportunity. Located along key waterways the combined plants will benefit from significant efficiencies. The Limburg province also remains an attractive market for concrete with Antwerp and Liege on either side. This is a significant further step in the evolution of our operations in the Benelux market."

Max Vermorken, CEO of SigmaRoc, commented:

"We are making solid and rapid progress with our Benelux footprint, adding attractive businesses to the two platforms we now operate in that region. The expansion potential remains significant with further additions to follow in due course."

Information on the Company is available on the Company's website, www.sigmaroc.com .

SigmaRoc plc Max Vermorken	Tel: [phone]
Strand Hanson Limited (Nominated and Financial Adviser) James Spinney / James Dance / Rob Patrick	Tel: [phone]
Liberum Capital (Co-Broker) Neil Patel / Jamie Richards / William Hall	Tel: [phone]
Peel Hunt (Co-Broker) Mike Bell / Ed Allsop	Tel: [phone]
Investor Relations Florian Werner	Tel: [phone] [e-mail]

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.

 

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