Buy-and-build construction materials provider SigmaRoc is to acquire the remaining 60% shares in Welsh quarrying group GDH for around £7.5m.
SigmaRoc previously acquired a 40% equity interest in GDH in April 2019 for £4.89m. Following exercise of its exclusive option, SigmaRoc will fully own GDH with completion anticipated on or around September 21 this year.
London-based SigmaRoc says the deal will be funded through internal resources following strong cash generation during the first half of 2020.
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.
The GDH business was founded by Gerald D. Harries and built into an independent regional supplier by his son Ian Harries, who will continue to have an active involvement in the company going forward. An independent assessment of its mineral assets by SLR Consulting has indicated close to 80m tonnes of reserves and resources. The SigmaRoc board believes that the total expected life of the reserves and resources of GDH is close to 100 years at the present rate of consumption.
On taking full ownership of GDH, SigmaRoc says it expects to make further progress with the integration and further improvement of the business in line with its stated objectives and track record across the UK and Belgium.
As GDH recorded a solid performance in each month of this year with a positive Underlying EBITDA for the months of severe lock-down in Wales, SigmaRoc says it is confident it can continue the success of GDH into the future.
Max Vermorken, CEO of SigmaRoc, commented: “Over the past 18 months we have assisted GDH with its development as a minority shareholder. As we are moving into a new phase of the development of the business we look forward to continue to work with Ian Harries and his team to build and strengthen GDH as a member of the SigmaRoc Group.”
