SigmaRoc announces acquisition of Carrières du Hainaut for €45.1m, in conjunction with a placing of £32.8m.

SigmaRoc plc, the AIM listed buy-and-build construction materials group, has announced the acquisition of Carrières du Hainaut (“CDH”), the Belgian blue limestone (“Bluestone”) and aggregates business, for consideration of, in aggregate, €45.1m. The total enterprise value of the acquisition is €81.3m, a multiple of 6.8x CDH’s underlying EBITDA for the twelve months ended 30 June 2019.

In conjunction with the acquisition of CDH, SigmaRoc completed a placing of 79,921,640 new ordinary shares at a price of 41p per share, raising £32.8m, with strong support from institutional investors.

Strand Hanson acts as Financial & Nominated Adviser to SigmaRoc, with James Spinney, James Dance and Jack Botros working on the transaction.

Max Vermorken, CEO of SigmaRoc, commented:

“This acquisition, which is consistent with our strategy of growth, provides us with an exciting opportunity to substantially strengthen our existing presence in Belgium, one of the highest infrastructure densities in the EU. Across the Group, I am extremely proud of what we have already achieved and excited about this next stage of our expansion. CDH is over 130 years old, has over 150 years of remaining reserves, is Europe’s largest Dimension Stone quarry and one of Belgium’s largest construction aggregate producers. This unique combination offers SigmaRoc significant potential in the Benelux market.”

James Spinney, Strand Hanson’s Head of Capital Markets, commented:

“We are delighted to continue to support SigmaRoc as it delivers on its buy-and-build strategy. Since its admission to AIM in January 2017, when it raised approximately £50m, SigmaRoc has continued to execute its growth plan decisively. The acquisition of CDH is potentially transformational for the company and provides a footprint from which the group can develop its European platforms.”

Founded in 1888, CDH is Europe’s largest Bluestone quarry, equating to the size of the City of London, with a 50% global market share. Due to its high quality and distinctive characteristics, Bluestone is a Global Heritage Resource and a highly prized product that travels worldwide (unlike most aggregates). Bluestone can be used in residential, commercial and infrastructure projects, as well as for architectural and cosmetic applications.

For the 12 months to 30 June 2019, CDH generated unaudited revenue of €45.9m and underlying EBITDA of €12.0m. The acquisition will be double-digit percentage accretive to earnings for the Company and the site has c.150 years of reserves remaining.