(Sharecast News) - Lime and limestone company SigmaRoc announced the exercise of the call option to acquire the UK lime operations of CRH for €155m (£133m) on Monday.
The AIM-traded firm said the acquisition was set to be completed by the end of March.
It said the move followed its conditional acquisition of CRH's lime businesses in Germany, the Czech Republic and Ireland, alongside the UK target.
The UK target consists of CRH's Tarmac Shelfco entity, a prominent producer of lime products in the UK, established in 1891 and based in Buxton, Derbyshire.
It said the business operates from sites in Tunstead and Hindlow, boasting five permitted kilns.
In the year ended 31 December 2022, the UK target generated revenue of €105.4m and an operating profit of €19.5m.
The consideration for the target would be met through a drawdown under SigmaRoc's new facilities.
SigmaRoc said the acquisitions gave it the opportunity for it to emerge as Northern Europe's leader in lime and a significant supplier to key markets crucial for the green transition.
Lime and limestone play pivotal roles in fostering sustainability, with new applications including lithium battery production, construction decarbonisation, and environmental applications such as lake liming and air pollution mitigation, the board explained.
The lime market was expected to grow to €1.9bn in 2031 across the enlarged group's markets.
SigmaRoc said the enlarged group post-acquisition was expected to generate substantial cash flow, with a free cash flow target surpassing £100m annually, enabling gradual deleveraging.
The targets collectively delivered revenue of €579.7m and EBITDA of €133.7m in the 2022 financial year, with an EBITDA margin exceeding 20%.
Revenue growth opportunities and cost synergies were projected to contribute at least €30m in EBITDA by 31 December 2027.
At 1054 GMT, shares in SigmaRoc were up 1.54% at 66.4p.
Reporting by Josh White for Sharecast.com.
Sigmaroc. (SRC)