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Rebecca Wayman

London's SigmaRoc acquires multi-million-pound stake in South Wales quarry group

Buy-and-build construction materials group SigmaRoc plc has acquired a 40 per cent. equity interest in GDH for a cash consideration of £4.89m.

In addition, SigmaRoc has also entered into an option agreement with the owners of GDH, whereby SigmaRoc has the exclusive right to purchase the remaining 60 per cent of GDH, a quarrying group in South Wales, for a cash consideration of £7.5m.

The initial consideration has been funded through a combination of internal resources and the group’s available credit facilities. SigmaRoc intends to fund the next consideration on the same basis, implying no dilution for equity holders.

David Barrett, SigmaRoc’s executive chairman, said: “GDH is a great business with a substantial asset footprint spanning across South Wales.

“GDH will be the heart of our South Wales platform. It is a business with a long history of success and much future potential. Ian Harries’ continued involvement will assist us in delivering growth across the platform for the benefit of our shareholders.”

For the years ended December 31, 2015, 2016 and 2017, GDH recorded average revenues of around £23.4m, with assets worth around £26m.

SigmaRoc’s acquisition of an initial 40 per cent stake, for the first consideration, will see it become a minority shareholder in GDH.

GDH is a major quarrying, asphalt, concrete and contracting business located in South Wales. It operates 17 production facilities, including seven hardstone quarries, six concrete plants, three asphalt plants and a wharf operation, as well as four road contracting units.

Max Vermorken, CEO of SigmaRoc, concluded: “I am extremely proud of what our small team has been able to achieve within only a short space of time.

“With GDH as part of the group, we will operate nearly a dozen quarries, 100m tonnes of reserves and resources, close to 500 people employed, with significant skill, drive and enthusiasm within the various management teams.”

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