SigmaRoc acquire Topcrete Ltd
Construction materials group announces £9 million takeover of Topcrete and subsidiary Allen Concrete
SigmaRoc plc, the AIM-listed buy-and-build construction materials group, have completed the acquisition of Topcrete and their wholly owned subsidiary Allen Concrete for an initial cash consideration of £9 million and a deferred consideration of £3.5 million, subject to completion adjustments.
Founded over 60 years ago, specialist precast concrete producers Allen Concrete are well known for their high-quality wetcast and bespoke products, and supply to a wide range of customers, ranging from builders’ merchants to major infrastructure operators, including Network Rail.
The company also has a well-established footprint, including a freehold production facility in the Midlands and a further freehold industrial site in London of significant value. For the year to 28 February 2017, Allen Concrete reported consolidated revenue of £5.2 million, EBITDA of £2 million and profit before tax of £1.8 million.
The latest transaction is SigmaRoc’s third acquisition this year. In January 2017, the company successfully acquired Channel Island construction materials producers Ronez Ltd from Aggregate Industries for £45 million, and in April they acquired a dry bulk carrier ship and established a new shipping division, SigmaGys Ltd. SigmaRoc’s pipeline for future transactions remains strong.
Commenting on the latest acquisition, David Barrett, chairman of SigmaRoc, said: ‘We are very pleased to welcome Allen Concrete to the SigmaRoc group; it has a solid history and is highly regarded in its sector.
‘The acquisition fits well with our strategy and builds on the successful platform we have created since the integration of Ronez. This is another step in our ambition to generate shareholder value, while preserving the unique identity of the businesses we buy.’
Max Vermorken (pictured), SigmaRoc’s chief executive officer, commented: ‘Allen Concrete is another excellent example of the type of business we are seeking to acquire, as we roll out our buy-and-build strategy.
‘It is a high-calibre operation with a market leading position, that is driven by its specialist products and a workforce dedicated to quality. Allen Concrete is well placed for further organic growth, as well as bolt-on activities centered around its industrial landholdings in London, all of which will further boost SigmaRoc’s EBITDA.’