LONDON: Van Elle Holdings plc (AIM: VANL), the UK’s largest ground engineering contractor, has acquired the entire issued ordinary share capital of Albion Drilling Holdings Limited, a market leading specialist piling and drilling business, for total consideration of up to £3.5m, of which £0.5m is net cash acquired.

Based in Stirling, Albion is a leading specialist piling and drilling business with a strong track record of delivering complex infrastructure projects across Scotland.

The business is privately owned, founded in 1986, providing a range of specialist piling, technical drilling and geotechnical engineering including quarry and close-proximity blasting, marine drilling, ground stabilisation and rock anchoring.

Albion is a complementary and strategically aligned bolt-on acquisition, which expands Van Elle’s presence in Scotland and further extends the Group’s technical capabilities.

The business has a high-quality rig fleet and skilled workforce, and a strong track record in infrastructure projects, with a blue-chip customer base that complements the Group’s.

Albion’s track record in the energy sector aligns to the Group’s strategy, where Van Elle is currently delivering two energy infrastructure schemes in Scotland and expects to mobilise further, larger schemes in early 2025.

Albion will be aligned to the Group’s Specialist Piling division, which shares a similar operating model.  The Group will co-locate its facilities at Stirling and integrate its resource to grow its Scotland-based capability to meet the demand of a series of major long-term opportunities. The Acquisition is expected to be earnings accretive in the first full year of ownership and the Board believes there are modest cost synergies to be achieved.

For the year ended 31 January 2024, Albion delivered (unaudited) revenue of £5.5m, an EBITDA of £1.0m and profit before tax of £0.8m. Net assets at the same date were £2.6m. The Group’s assessment of the market valuation of net assets acquired exceeds the total consideration of £3.5m.

Managing Director, Jim King, and the entire workforce consisting of 31 employees will become part of the Van Elle Group, and the business will continue to operate under the Albion brand. Jim King will assume a wider role as Van Elle’s director for Scotland, reporting to Chief Operating Officer, Malcolm O’Sullivan.

Chief Executive, Mark Cutler, commented: ”The acquisition of Albion represents an exciting and important step towards the delivery of our growth strategy in the energy sector. It also broadens the Group’s range of specialist capabilities and customer base. Albion is a highly regarded specialist contractor with complementary capabilities and an experienced workforce who will fit perfectly into the Group’s operating structure. May I welcome Jim King our new Scotland director, and all Albion employees to the Van Elle Group.”

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