Group reports good initial progress on identified transactions including completion of two acquisitions
QUARRIED materials group SigmaRoc have provided an update on their acquisition and capital investment project pipeline, set out at the time of the Group’s equity fundraising which was announced on 22 February 2023.
SigmaRoc say good initial progress has been made in executing the identified transactions, with the completion of two acquisitions, for an aggregate consideration of £12 million. In addition, the Group is continuing to trade in line with expectations, benefitting from its broad European and end-market spread, and continued gains from productivity improvements across the regional platforms. Initial investment has also been made in identified organic development projects.
The Group has completed the acquisition of Goijens, a leading supplier of ready-mixed concrete and pumping solutions, located in the north east of Belgium. The acquisition was closed at an effective multiple of five times, before expected synergies and operational improvements.
Goijens, who generated £16 million in revenue in 2021, operate two concrete plants and concrete recycling facilities, as well as pumping and other services. Their footprint, which is located in the north-east of Belgium on around 10 acres of freehold land, is highly complementary to SigmaRoc’s Benelux platform, which will allow commercial and operational synergies, as well as a swift integration into the Group.
The Group has also completed the acquisition of Juuan Dolomiittikalkki (JD) in Finland for an effective multiple of six times recurring average EBITDA for the years 2020 to 2022, pre-synergies and operational improvements. JD are specialist suppliers of high-quality dolomitic limestone, used in the agricultural and environmental sectors to improve regulation of soil pH and water retention. JD’s operations are located close to the Group’s existing Finnish business and represent a valuable extension into dolomitic limestone.
JD add approximately 1.5 million tonnes of reserves, equating to roughly 30 years of operating life and €1.5 million of revenues to the Group. The existing management team will continue to operate and grow JD as it is integrated into Nordkalk’s Nordics platform.
SigmaRoc say significant progress has also been made across the Group’s organic development projects, with required infrastructure and equipment orders placed. The Nordkalk platform has now taken into use its first fully electric heavy goods vehicle for the transport of aggregates between production and port operations in Norway.
Max Vermorken, chief executive officer of SigmaRoc, commented: ‘We are making good progress on the acquisitions pipeline set out at the time of our recent equity fundraising, with £12 million deployed across two completed transactions.
‘Timelines for the further acquisitions and organic projects remain as initially expected and updates on these will be made in due course. The synergistic benefits of the acquisitions in our pipeline, both to growth and returns, together with the productivity initiatives we have across the Group, continue to give us confidence in sustaining our momentum.’