Business
Exercise of Option on UK Lime Operations
Exercise of Option on UK Lime Operations.
About this update from Sigmaroc Plc
[{"type":"text","content":"\n\n4 March 2024\n \n(EPIC: SRC / Market: AIM / Sector: Construction Materials)\n \nSIGMAROC PLC\n ('SigmaRoc', the 'Group' or the 'Company')\n \nNotice issued of exercise of the call option to acquire CRH's UK Lime operations\n \nSigmaRoc, the AIM quoted lime and limestone group, is pleased to announce that the Group has issued notice of exercise of the call option, entered into on 22 November 2023 (the \"UK Call Option\"), to acquire the UK lime operations of CRH plc (the \"UK Target\") (the \"Deal 2 Acquisition\") for a total consideration of €155 million (approximately £133 million). Completion of the Deal 2 Acquisition is expected by the end of March 2024.\n \nAs announced on 23 November 2023, alongside the conditional acquisition of CRH's lime businesses in Germany, Czech Republic and Ireland, the Company entered into the call options which granted it the right to acquire the UK Target, as well as CRH's lime operations in Poland (the \"Polish Target\") at a future date. Following completion of the acquisition of the Deal 1 Targets on 4 January 2024 and of the separation process in the UK, the Company has issued notice to exercise the UK Call Option.\n \nThe UK Target comprises CRH's Tarmac Shelfco Limited entity, the leading producer of lime products in the UK. Founded in 1891 and headquartered in Buxton, Derbyshire, the business operates from sites in Tunstead and Hindlow, with a total of 5 permitted kilns. In the year ending 31 December 2022, the UK Target generated revenue of €105.4m and operating profit of €19.5m. The consideration payable for the Deal 2 Target will be satisfied by a draw down under the New Facilities.\n \nThe Company is pleased with the progress to date on the integration of the Deal 1 Targets, being the German, Czech and Irish entities, and will provide a further update alongside its results for the year ended 31 December 2023.\n \nHighlights of the Acquisitions\n \n· Provide an opportunity to become Northern Europe's leader in lime and a key supplier to the structural growth markets critical for the green transition.\n· Lime and limestone are key resources in the transition to a more sustainable economy. New applications for lime and limestone products as part of a drive for sustainability i...