SigmaRoc completes 60% acquisition of quarrying group GDH
The £7.5m 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.
SigmaRoc said it expects the completed acquisition to be significantly earnings enhancing.
The group will be working alongside GDH to grow and develop the business in South Wales, focusing on opportunities for the business during the remainder of the year and into 2021.
GDH is a quarrying, asphalt, concrete and contracting business located in South Wales. The group 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.
An independent assessment of its mineral assets by SLR Consulting 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.
Shares in SigmaRoc have doubled since April 2020 and were trading 0.22% higher this morning at 45.5p following the announcement.
On taking full ownership, SigmaRoc intends to progress the integration and improvement of the business in line with its stated objectives and track record in the UK and Belgium.
Due to the fact that GDH previously recorded a solid performance in each month of the 2020 financial year - with a positive underlying EBITDA for the months of severe lock-down in Wales - the Group said it is confident it can continue the success of GDH into the future.
Commenting on today’s completed acquisition, Max Vermorken, CEO of SigmaRoc, said:
"We are delighted to have completed our acquisition of GDH and we look forward to building on the excellent progress made during our time as a minority shareholder and to continuing our work with Ian Harries and his team at GDH as they become part of the SigmaRoc Group."
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