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LONDON (Alliance News) - Construction materials group SigmaRoc PLC said on Monday it has acquired a 40% stake in South Wales-based quarrying group GDH (Holdings) Ltd for GBP4.9 million.
In addition to the 40% stake acquisition, SigmaRoc has entered an option agreement to buy the remaining 60% interest for GBP7.5 million at the end of August 2020 at the latest.
Both the initial and further payments will be funded by internal resources and SigmaRoc's credit facilities.
Should SigmaRoc not exercise for option for the 60% GDH stake by the end of August 2020, GDH Chair Ian Harries and Director Janet Philips can purchase the SigmaRoc's 40% stake for no less than GBP3.5 million.
The acquisition of the 40% stake will increase SigmaRoc's operations to 11 quarries and 26 operations sites with 100 million tonnes of reserves and resources in the UK.
As at October 31, GDH held assets with a book value of GBP26 million and net assets of GBP13 million.
"GDH is a great business with a substantial asset footprint spanning across South Wales. GDH will be the heart of our South Wales platform. It is a business with a long history of success and much future potential. Ian Harries' continued involvement will assist us in delivering growth across the platform for the benefit of our shareholders," said SigmaRoc Executive Chair David Barrett.
SigmaRoc has appointed Tim Hall as a non-executive director with effect in April.
Hall's most recent executive role was as chief executive of the Southern division of construction material group Breedon Group PLC, from 2010 to 2017.
"I would also like to welcome Tim to the board of the company. Tim will be joining us at an exciting time in our evolution having just closed a significant transaction. The growing SigmaRoc group of companies is now in an excellent position to benefit from Tim's access and knowledge as one of the industry's foremost executives," Barrett added.
SigmaRoc will publish its 2018 results on May 16. Shares were up 4.4% at 47.00 pence on Monday.
