SigmaRoc to buy Channel Islands-based building supplier for £45m
Construction investor SigmaRoc is to buy channel Islands-based building product supplier Ronez for £45m in cash after raising £50m in equity.
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The AIM-listed company is to buy Ronez, a subsidiary of Aggregate Industries, which is part of the LafargeHolcim Group, a Swiss building materials manufacturer, as part of its growth stategy and for it to fund the company's wider business plan.
The acquisition was funded on the placing 100m shares at 40p each and 10, convertible loan notes at £1, which raised £50m for the acquisition. The remaining equity will be used for general working capital.
The acquisition is due to cpm-let and the shares are expected to be admitted to trade on AIM around 5 January.
Due to its size and nature, the acquisition is considered a reverse takeover in accordance of AIM Rules and is subject to shareholder approval.
Ronez operates two hard rock quarries and multiple business lines with production units across Jersey and Guernsey, with approximately 3.36m tonnes of proved mineral reserves and a further 6.22m tonnes of measured and indicated mineral resources. In 2015, it had £26.3m of revenue and operating profit before tax of £2.94m.
SigmaRoc’s chief executive, Max Vermorken said: "Ronez presents an excellent opportunity to acquire a profitable and well managed building materials business in a very stable market. It will be our cornerstone asset and a great starting point in the journey to grow a niche focused building materials business.
"The acquisition of Ronez is the first of what we anticipate being a pipeline of value accretive deals and we are delighted to have secured broad buy in from UK and Channel Island investors keen to support our ambitions."