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Van Elle has purchased the entire share of piling specialist Rock and Alluvium from its parent company Galliford Try for up to £3.8M in a bid to expand further into London and the South East.
Surrey based Rock and Alluvium has provided piling solutions to the building and civil engineering sectors since it was established in 1963. It joined Galliford Try Holdings in 1980.
For the year ended 30 June 2023, Rock and Alluvium generated revenues of £15.5M and an operating loss of £200,000.
The business has built a strong reputation primarily serving the residential and commercial sectors in London and the South East. It has a fleet of 11 piling rigs, a highly trained workforce and an experienced management team.
Under the new deal, the company will be integrated into ground engineering specialist Van Elle’s general piling division.
Van Elle has said that Rock and Alluvium represents a “strategic and complementary acquisition” for the group.
“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 said in a statement.
Van Elle also announced that it has entered into a five year trading agreement with Galliford Try, under which Van Elle will provide piling and geotechnical services.
Its board expects that the trading agreement will generate revenues of more than £10M each year.
The cash consideration payable for the acquisition comprises an initial payment of £1.8M and up to £2M deferred consideration, satisfied through the group’s existing cash and banking facilities.
Van Elle has said that its balance sheet “remains strong” and it is expected to be in a net cash position post transaction. This will provide the group with “headroom to support further organic and inorganic investment opportunities”.
“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,” Van Elle chief executive Mark Cutler commented.
“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.”
He added that since Van Elle’s acquisition of screw pile company Screw Fast Foundations in 2021, the board has been “disciplined in reviewing acquisition opportunities”.
“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.”
Van Elle’s acquisition of Rock and Alluvium is expected to be completed in mid-November 2023.
For the year ending 30 April 2023, Van Elle reported record revenues of £148.7M and and an increased pre-tax profit of £5.4M. It ranks fourth in the GE100 2023 list of top UK geotechnical companies by turnover.
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