Business
Acquisition & Appointment to the Board
Acquisition & Appointment to the Board.
About this update from Sigmaroc Plc
[{"type":"text","content":"\n \nRNS Number : 1257W SigmaRoc PLC 15 April 2019 \n\nSigmaRoc plc / EPIC: SRC / Market: AIM / Sector: Construction & Materials\n15 April 2019\nSigmaRoc plc\n('SigmaRoc', the 'Company' or the 'Group') \nAcquisition of stake in leading quarrying group GDH (Holdings) Limited ('GDH')\nTim Hall to join the board of SigmaRoc as a Non-Executive Director\nSigmaRoc plc, the buy-and-build construction materials group, is pleased to announce it has acquired a 40 per cent. equity interest in GDH (the 'Initial Acquisition'), a significant quarrying group located in South Wales, for a cash consideration of £4.89m (the 'Initial Consideration'). In addition, the Company has entered into an option agreement with the owners of GDH, whereby SigmaRoc has the exclusive right to purchase the remaining 60 per cent. of GDH (the 'Further Acquisition') for cash consideration of £7.5m (the 'Further Consideration'), on or before 31 August 2020 (the 'Option'). \nThe Initial Consideration has been funded through a combination of internal resources and the Group's available credit facilities and SigmaRoc intends to fund the Further Consideration on the same basis, implying no dilution for equity holders. Assuming the Group exercises the Option, on completion of the Further Acquisition, the Company expects the Group's Net Debt to EBITDA ratio to remain close to the current level of 2:1. \n \nHighlights:\n· Acquisition of a 40 per cent. stake in leading South Wales quarrying group for £4.89m and an exclusive option to acquire remaining 60 per cent. stake for £7.5m;\n· Increases Group operations to 11 quarries, 26 operational sites with over 100m tonnes of reserves and resources across Great Britain; \n· GDH posted average revenues of £23.4m and adjusted EBITDA of £3.4m for the calendar years ended 31 December 2015, 2016 and 2017 and held assets with a book value of approximately £26m; \n· SigmaRoc intends to fund both acquisitions through internal resources and existing debt facilities without materially increasing its leverage ratios; \n· The acquisition of both the 40 and 60 per cent. stakes will be immediately earnings enhancing given the absence of dilution for equity holders; and\n· Tim Hall, former CEO of Breedon South, t...