REG - Van Elle HoldingsPLC - Acquisition of Rock and Alluvium

Van Elle HoldingsAnnouncement

26/10/2023 14:00

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RNS Number : 4418R  Van Elle Holdings PLC  26 October 2023

Van Elle Holdings plc

('Van Elle', the 'Company' or the 'Group')

 

Acquisition of Rock and Alluvium

& Investor Presentation

 

Van Elle Holdings plc (AIM: VANL), the UK's largest ground engineering
contractor, announces that it has agreed to acquire the entire issued share
capital of Rock and Alluvium Limited ('Rock and Alluvium'), a leading UK based
piling specialist, for a total consideration of up to £3.8m on a cash-free,
debt-free basis (the 'Acquisition'), subject to completion accounts.

Based in Leatherhead, Rock and Alluvium was established in 1963, joined
Galliford Try Holdings plc ('Galliford Try') in 1989, and has built a strong
reputation primarily serving the residential and commercial sectors in London
and the South East. The business operates a well invested fleet of 11 piling
rigs which complements Van Elle's existing capital investment programme, has a
highly trained workforce and an experienced management team.

Rock and Alluvium represents a strategic and complementary acquisition for the
Group and will be integrated within Van Elle's General Piling Division. It
provides the Group with an established presence in the South East, a region
with good mid-term growth prospects which is currently under-served by Van
Elle.

The Company also announces it has entered into a five-year trading agreement
with Galliford Try under which Van Elle will provide piling and geotechnical
services (the 'Trading Agreement'). The Board anticipates that the Trading
Agreement will generate revenues in excess of £10m per annum.

The cash consideration payable for the Acquisition comprises an initial
payment of £1.8m, and a deferred consideration payment of £2.0m (subject to
completion accounts), payable 12 months from completion, with both payments to
be satisfied through the Group's existing cash and banking facilities. The
Company's balance sheet remains strong and is expected to be in a net cash
position post transaction, providing the Group with headroom to support
further organic and inorganic investment opportunities.

For the year ended 30 June 2023, Rock and Alluvium generated revenues of
£15.5m and a draft operating loss of £0.2m. The assets subject to the
Acquisition had a net asset value of approximately £3.7m as at 30 June 2023.

The Acquisition is expected to be accretive to underlying earnings in the
first full year of ownership, and the Board is confident that modest cost
synergies will be realised when fully integrated. The Acquisition is expected
to complete in mid-November 2023.

Mark Cutler, Chief Executive of Van Elle, commented:

"I am delighted to announce the acquisition of Rock and Alluvium and our
Trading Agreement with Galliford Try, which I am confident will deliver
positive benefits for both parties.  This deal accelerates our expansion into
London and the South East, by bringing a highly regarded business and team
into the Group with a proven track record, a strong order book and a well
invested fleet.

"This follows the acquisition of ScrewFast Foundations in 2021.  The Board
has been very disciplined in reviewing acquisition opportunities in the
intervening period to ensure they will support the delivery of our growth
strategy. I believe that Rock and Alluvium will prove to be an excellent
addition to the Group.

"I look forward to welcoming the management team and all Rock and Alluvium
employees to Van Elle."

Investor Presentation: 11.00am on Friday 27 October 2023

 

Mark Cutler, Chief Executive Officer, and Graeme Campbell, Chief Financial
Officer, will hold a presentation to discuss the Acquisition through the
digital platform Investor Meet Company.

 

Investors can sign up to Investor Meet Company for free and add to meet Van
Elle Holdings plc via the following link
https://www.investormeetcompany.com/van-elle-holdings-plc/register-investor
(https://www.investormeetcompany.com/van-elle-holdings-plc/register-investor)
.

 

Investors who have already registered and added to meet the Company will
automatically be invited. Questions can be submitted pre-event to
vanelle@walbrookpr.com (mailto:vanelle@walbrookpr.com) , or in real time
during the presentation via the "Ask a Question" function.

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014)
("MAR") prior to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations.

More information on Rock and Alluvium can be found on its website at:
www.rockal.com (http://www.rockal.com)

 

For further information, please contact:

 Van Elle Holdings plc                                   Via Walbrook

 Mark Cutler, Chief Executive Officer

 Graeme Campbell, Chief Financial Officer

 Peel Hunt LLP (Nominated Adviser and corporate broker)  Tel: 020 7418 8900

 Ed Allsopp / Ben Harrington

 Walbrook PR Limited                                     Tel: 020 7933 8780

                                                         or vanelle@walbrookpr.com
 Tom Cooper / Nick Rome                                  07971 221 972 or 07748 325 236

 

 

About Van Elle Holdings plc:

Van Elle Holdings is the UK's largest specialist geotechnical engineering
contractor. Formed in 1984 and listed on AIM in 2016, the Company provides a
wide range of ground engineering techniques and services including ground
investigation, general and specialist piling, rail geotechnical engineering,
modular foundations, and ground improvement and stabilisation services.

Van Elle operates through three divisions: General Piling, Specialist Piling
and Rail, and Ground Engineering Services; and is focused on diverse end
markets including residential and housing, infrastructure and regional
construction - across which the Group has completed more than 20,000 projects
over the last 35 years.

 

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