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SigmaRoc to acquire CDH Développement
Posted on Wednesday, 16 October 2019 15:13
London Aim-listed buy-and-build construction materials provider SigmaRoc has signed on the dotted line to pick up CDH Développement, a Brussels-headquartered blue limestone quarrying services holding company.
Under the terms of the transaction, the buyer will pay EUR 45.10 million for the business, giving it a total enterprise value of EUR 81.30 million.
An initial payment of EUR 29.10 million will be made upon completion, with the remaining EUR 16.00 million to be deferred over two years; the first EUR 2.00 million will be paid on the first anniversary of closing, while EUR 14.00 million will follow on the second anniversary.
The acquisition will be funded using the proceeds of a concurrent share placing worth GBP 32.80 million and which will account for around 31.5 per cent of the firm’s enlarged share capital.
Those stocks are slated to be admitted to trading on Aim on 17th October.
Commenting on the agreement, SigmaRoc chief executive Max Vermorken said the purchase of CDH enables the company to strengthen its existing presence in Belgium.
The group’s executive chairman, David Barrett, noted that the firm will continue to look at other potential acquisition targets if it feels it can create value for shareholders by making a purchase.
According to SigmaRoc, CDH is the largest bluestone quarry in Europe.
Founded in 1988, the company has a global market share of 50.0 per cent and has 150 years of reserves remaining.
CDH posted revenue of EUR 45.26 million in fiscal 2018, up from EUR 44.79 million over the preceding 12 months.
Earnings before interest, taxes, depreciation and amortisation stood at EUR 11.07 million, compared to the EUR 10.28 million generated in fiscal 2017.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 10 deals targeting crushed and broken limestone mining and quarrying companies announced worldwide in 2019 to date.
Those targeted include Vietnam-headquartered Tien Trung Investment Construction and Technology Joint Stock Company, which unveiled the terms of a USD 5.80 million private placing of stock in July.
© Zephus Ltd