AIM-quoted buy-and-build construction materials group SigmaRoc has entered into a provisional share-purchase agreement to buy CDH Développement SA, the holding company of Carrières du Hainaut SCA and CDH International SCA, the Belgian blue limestone and aggregates business, for €81.3 million.
Founded in 1888, CDH has what it says is Europe’s largest Belgium Blue stone quarry, with 150 years of reserves remaining. As well as producing building stone and paving, it is a major aggregates quarry, producing 1.5–2million tonnes per year.
For the 12 months to 30 June 2019, CDH generated unaudited revenue of €45.9million with an underlying EBITDA of €12million.
SigmaRoc intends to raise gross proceeds of approximately £32.8million through the placing of new ordinary shares, of which £25.8million (€29.1million) will be used to fund the initial consideration of the purchase. The balance will be used for future investment and general working capital.
Max Vermorken, chief executive of SigmaRoc, says: ‘This acquisition, which is consistent with our strategy of growth, provides us with an exciting opportunity to substantially strengthen our existing presence in Belgium, one of the highest infrastructure densities in the EU.
“Across the Group, I am extremely proud of what we have already achieved and excited about this next stage of our expansion. CDH is over 130 years old, has more than 150 years of remaining reserves, is Europe's largest dimension stone quarry and one of Belgium’s largest construction aggregate producers. This unique combination offers SigmaRoc significant potential in the Benelux market.”
Last month, SigmaRoc conditionally agreed to acquire Belgian sea-defence rock-quarrying group Stone Holdings SA for a transaction value of up to €2.2million.