SigmaRoc has acquired a construction materials company for £9m

SigmaRoc plc, a buy-and-build construction materials group, has announced the acquisition of Topcrete Limited and its wholly owned subsidiary Allen Concrete Limited (Allen Concrete) for an initial cash consideration of £9m.

This consideration is subject to adjustments in respect of completion accounts. The acquisition is expected to enhance earnings in the year ending December 31 2017.

Founded over 60 years ago, Allen Concrete is a specialist precast concrete producer, with operations in London and the Midlands. It is known for its wetcast and bespoke concrete products, supplying various clients ranging from builders’ merchants to infrastructure operators, including Network Rail.

David Barrett, SigmaRoc’s chairman, commented: “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.”

For the year ending February 28 2017, Allen Concrete recorded underlying profit before tax of £1.8m, EBITDA of £2m and consolidated revenue of £5.2m.

This consideration is being satisfied by the payment of £9m in cash, funded through the company’s acquisition existing term facility with Santander.

The transaction is also said to release £0.5m in working capital for the SigmaRoc group.

Max Vermorken, CEO of SigmaRoc, concluded: “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, 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 centred around its industrial landholdings in London.”