SigmaRoc to acquire remaining 60% stake in leading quarrying group GDH Holdings
LONDON: SigmaRoc plc, the buy-and-build construction materials group, announced it will acquire the remaining 60 percent equity interest in GDH, a significant quarrying group located in South Wales, following the exercise of its exclusive option.
Completion is anticipated on or around 21 September 2020. The consideration will be funded through internal resources following strong cash generation during the first half of 2020. The Group’s objective not to incur further dilution for equity holders for the acquisition of the remaining 60% shareholding was therefore achieved, making this transaction significantly earnings enhancing.
As stated in the announcement of 15 April 2019, 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 business was founded by Mr. Gerald D. Harries and built into the foremost 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 Limited has indicated close to 80m tonnes of reserves and resources. The 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, the Group 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, the Group is confident it can continue the success of GDH into the future.
David Barrett, Chairman of SigmaRoc, commented: “We are very happy to have been able to keep our promise to fund the entire acquisition of GDH from internal resources to the benefit of our shareholders. As we move forward we will, with the assistance of Ian Harries, continue the success he and his family built.”
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.”
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