SigmaRoc acquire Belgian concrete assets
Group establishes second European heavy-side construction materials platform following latest acquisitions
IN line with their stated strategy, AIM-quoted construction materials group SigmaRoc have acquired Belgian concrete producers B-Mix Beton NV, J&G Overslag en Kraanbedrijf BV and TOP POMPING NV (collectively known as B-Mix), as well as Casters Beton NV from Groep Janssens NV for a combined cash consideration of €13 million.
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 €22 million, EBITDA of €3.3 million and a net profit of €1.5 million in the year ended 31 December 2020, with net assets of €5.9 million.
SigmaRoc say 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.
Following the acquisitions and the creation of the Granulats du Hainaut (GDH) aggregates brand, as announced on 26 March 2021, SigmaRoc have decided to separate their 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 €44 million 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 €36 million per year.
As a result of these developments, SigmaRoc’s combined annual turnover in continental Europe will grow to approximately €80 million per year.
Alongside the acquisitions, SigmaRoc have entered into an option agreement with JABO NV, granting them the right to acquire 11ha of quayside industrial land in Tessenderloo, for a consideration of €9 million.
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 unutilized area.
Should the option be exercised, SigmaRoc would continue to utilize approximately 4ha for the B-Mix business and are currently exploring opportunities to utilize the remaining land as part of their strategy for further expansion in the Belgian market.
Should opportunities not be identified which meet the Group’s investment criteria, 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 (pictured), chief executive officer of SigmaRoc, added: ‘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.’