(Sharecast News) - Quarried materials specialist SigmaRoc announced the completion of two acquisitions on Friday, valued at a total of £12m, as part of its capital investment project pipeline.
The AIM-traded company said the acquisitions were expected to generate commercial and operational synergies, as well as benefits from productivity improvements across the regional platforms.
It said the first acquisition, Goijens Concrete Group, is a leading supplier of ready-mixed concrete and pumping solutions in the north east of Belgium.
With revenue of £16m in 2021, Goijens operates two concrete plants and concrete recycling facilities, as well as pumping and other services.
Its footprint, located in 10 acres of freehold land, was said to be "highly complementary" to SigmaRoc's Benelux platform.
The acquisition was completed at an effective multiple of 5x recurring average EBITDA for the years 2020 to 2022.
SigmaRoc said the second acquisition, Juuan Dolomiittikalkki (JD), is a specialist supplier of 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 SigmaRoc's existing Finnish business, representing a "valuable extension" into dolomitic limestone.
JD would add around 1.5 million tonnes of reserves, equating to roughly 30 years of operating life and €1.5m of revenues to the group.
The acquisition was completed at an effective multiple of 6x recurring average EBITDA for the years 2020 to 2022.
SigmaRoc said significant progress had also been made across its organic development projects, with required infrastructure and equipment orders placed.
The Nordkalk platform had now taken its first fully-electric heavy goods vehicle into use for the transport of aggregates between production and port operations in Norway.
"We are making good progress on the acquisitions pipeline set out at the time of our recent equity fundraising, with £12m deployed across two completed transactions," said chief executive officer Max Vermorken.
"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."
SigmaRoc said it would publish its 2022 accounts and annual report on 27 March.
At 1233 GMT, shares in SigmaRoc were down 1.2% at 55.33p.
Reporting by Josh White for Sharecast.com.
Sigmaroc. (SRC)