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SigmaRoc PLC - Acquisition of leading quarrying group GDH

RNS Number : 5165X
SigmaRoc PLC
01 September 2020
 

1 September 2020

 

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

 

SIGMAROC PLC

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

 

Acquisition of leading quarrying group GDH (Holdings) Limited ('GDH')

 

SigmaRoc plc, the buy-and-build construction materials group, is pleased to announce it will acquire the remaining 60 per cent. equity interest in GDH, a significant quarrying group located in South Wales, following the exercise of its exclusive option. Completion is anticipated on or around 21 September 2020. The Consideration, as set out in its announcement of 15 April 2019, will be funded through internal resources following strong cash generation during the first half of 2020. The Group's objective not to incur further dilution for equity holders for the acquisition of the remaining 60% shareholding was therefore achieved, making this transaction significantly earnings enhancing.

 

As stated in the announcement of 15 April 2019, GDH is a major quarrying, asphalt, concrete and contracting business located in South Wales. It operates 17 production facilities, including seven hardstone quarries, six concrete plants, three asphalt plants and a wharf operation, as well as four road contracting units. The business was founded by Mr. Gerald D. Harries and built into the foremost independent regional supplier by his son Ian Harries, who will continue to have an active involvement in the company going forward. An independent assessment of its mineral assets by SLR Consulting Limited has indicated close to 80m tonnes of reserves and resources. The Board believes that the total expected life of the reserves and resources of GDH is close to 100 years at the present rate of consumption.

 

On taking full ownership of GDH, the Group expects to make further progress with the integration and further improvement of the business in line with its stated objectives and track record across the UK and Belgium. As GDH recorded a solid performance in each month of this year with a positive Underlying EBITDA for the months of severe lock-down in Wales, the Group is confident it can continue the success of GDH into the future. Further information on GDH can be found at ('https://gdharries.biz') or in the Group's announcement of 15 April 2019.

 

David Barrett, Chairman of SigmaRoc, commented:

"We are very happy to have been able to keep our promise to fund the entire acquisition of GDH from internal resources to the benefit of our shareholders. As we move forward we will, with the assistance of Ian Harries, continue the success he and his family built."

 

Max Vermorken, CEO of SigmaRoc, commented:

"Over the past 18 months we have assisted GDH with its development as a minority shareholder. As we are moving into a new phase of the development of the business we look forward to continue to work with Ian Harries and his team to build and strengthen GDH as a member of the SigmaRoc Group."

 

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

 

For further information, please contact:

 

SigmaRoc plc

Max Vermorken

 

Tel: +44 (0) 207 002 1080

Strand Hanson Limited (Nominated and Financial Adviser)

James Spinney / James Dance / Jack Botros

 

Tel: +44(0) 207 409 3494

Liberum Capital (Co-Broker)

Neil Patel / Jamie Richards / Jonathan Wilkes-Green / William Hall

 

Tel: +44 (0) 203 100 2000

 

 

Peel Hunt (Co-Broker)

Mike Bell/Ed Allsop

 

Tel: +44 (0) 20 7418 8900

Rubik Communications (Financial PR adviser)

Andrea Mora / Charlotte Hollinshead

Tel: +44 (0) 207 002 1080

[email protected]

 

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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Price: 46.5

Market: AIM
Market Cap: £117.99 m
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