SigmaRoc PLC Acquisition of Belgian concrete assets (5719U)

TIDMSRC

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 EUR13m:

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 EUR13m (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 EUR22m, EBITDA of EUR3.3m and a net profit of EUR1.5m in the year ended 31 December 2020, with net assets of EUR5.9m. 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 EUR44m 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 EUR36m per year. SigmaRoc's combined annual turnover in Continental Europe will therefore grow to approximately EUR80m 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 EUR9m. 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                                     Tel: +44 (0) 207 
  Max Vermorken                                    002 1080 
 Strand Hanson Limited (Nominated and Financial   Tel: [phone] 
  Adviser)                                         3494 
  James Spinney / James Dance / Rob Patrick 
 Liberum Capital (Co-Broker)                      Tel: +44 (0) 203 
  Neil Patel / Jamie Richards / William Hall       100 2000 
 Peel Hunt (Co-Broker)                            Tel: [phone] 
  Mike Bell / Ed Allsop                            8900 
 Investor Relations                               Tel: +44 (0) 207 
  Florian Werner                                   002 1080 
                                                   [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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACQIFMFTMTMMBPB

(END) Dow Jones Newswires

April 07, 2021 02:00 ET (06:00 GMT)