TIDMVANL
RNS Number : 4418R
Van Elle Holdings PLC
26 October 2023
Van Elle Holdings plc
('Van Elle', the 'Company' or the 'Group')
Acquisition of Rock and Alluvium
& Investor Presentation
Van Elle Holdings plc (AIM: VANL), the UK's largest ground
engineering contractor, announces that it has agreed to acquire the
entire issued share capital of Rock and Alluvium Limited ('Rock and
Alluvium'), a leading UK based piling specialist, for a total
consideration of up to GBP3.8m on a cash-free, debt-free basis (the
'Acquisition'), subject to completion accounts.
Based in Leatherhead, Rock and Alluvium was established in 1963,
joined Galliford Try Holdings plc ('Galliford Try') in 1989, and
has built a strong reputation primarily serving the residential and
commercial sectors in London and the South East. The business
operates a well invested fleet of 11 piling rigs which complements
Van Elle's existing capital investment programme, has a highly
trained workforce and an experienced management team.
Rock and Alluvium represents a strategic and complementary
acquisition for the Group and will be integrated within Van Elle's
General Piling Division. It provides the Group with an established
presence in the South East, a region with good mid-term growth
prospects which is currently under-served by Van Elle.
The Company also announces it has entered into a five-year
trading agreement with Galliford Try under which Van Elle will
provide piling and geotechnical services (the 'Trading Agreement').
The Board anticipates that the Trading Agreement will generate
revenues in excess of GBP10m per annum.
The cash consideration payable for the Acquisition comprises an
initial payment of GBP1.8m, and a deferred consideration payment of
GBP2.0m (subject to completion accounts), payable 12 months from
completion, with both payments to be satisfied through the Group's
existing cash and banking facilities. The Company's balance sheet
remains strong and is expected to be in a net cash position post
transaction, providing the Group with headroom to support further
organic and inorganic investment opportunities.
For the year ended 30 June 2023, Rock and Alluvium generated
revenues of GBP15.5m and a draft operating loss of GBP0.2m. The
assets subject to the Acquisition had a net asset value of
approximately GBP3.7m as at 30 June 2023.
The Acquisition is expected to be accretive to underlying
earnings in the first full year of ownership, and the Board is
confident that modest cost synergies will be realised when fully
integrated. The Acquisition is expected to complete in mid-November
2023.
Mark Cutler, Chief Executive of Van Elle, commented:
"I am delighted to announce the acquisition of Rock and Alluvium
and our Trading Agreement with Galliford Try, which I am confident
will deliver positive benefits for both parties. This deal
accelerates our expansion into London and the South East, by
bringing a highly regarded business and team into the Group with a
proven track record, a strong order book and a well invested
fleet.
"This follows the acquisition of ScrewFast Foundations in 2021.
The Board has been very disciplined in reviewing acquisition
opportunities in the intervening period to ensure they will support
the delivery of our growth strategy. I believe that Rock and
Alluvium will prove to be an excellent addition to the Group.
"I look forward to welcoming the management team and all Rock
and Alluvium employees to Van Elle."
Investor Presentation: 11.00am on Friday 27 October 2023
Mark Cutler, Chief Executive Officer, and Graeme Campbell, Chief
Financial Officer, will hold a presentation to discuss the
Acquisition through the digital platform Investor Meet Company.
Investors can sign up to Investor Meet Company for free and add
to meet Van Elle Holdings plc via the following link
https://www.investormeetcompany.com/van-elle-holdings-plc/register-investor
.
Investors who have already registered and added to meet the
Company will automatically be invited. Questions can be submitted
pre-event to vanelle@walbrookpr.com , or in real time during the
presentation via the "Ask a Question" function.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of those Regulations.
More information on Rock and Alluvium can be found on its
website at: www.rockal.com
For further information, please contact:
Van Elle Holdings plc Via Walbrook
Mark Cutler, Chief Executive Officer
Graeme Campbell, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and Tel: 020 7418 8900
corporate broker)
Ed Allsopp / Ben Harrington
Walbrook PR Limited Tel: 020 7933 8780
or vanelle@walbrookpr.com
Tom Cooper / Nick Rome 07971 221 972 or 07748
325 236
About Van Elle Holdings plc:
Van Elle Holdings is the UK's largest specialist geotechnical
engineering contractor. Formed in 1984 and listed on AIM in 2016,
the Company provides a wide range of ground engineering techniques
and services including ground investigation, general and specialist
piling, rail geotechnical engineering, modular foundations, and
ground improvement and stabilisation services.
Van Elle operates through three divisions: General Piling,
Specialist Piling and Rail, and Ground Engineering Services; and is
focused on diverse end markets including residential and housing,
infrastructure and regional construction - across which the Group
has completed more than 20,000 projects over the last 35 years.
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END
ACQNKABNBBDDAKB
(END) Dow Jones Newswires
October 26, 2023 09:00 ET (13:00 GMT)
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