A deal has been struck on a cash-free, debt-free basis.
Based in Leatherhead, Rock & Alluvium was established in 1963 and taken over by Galliford Try in 1989. It operates a fleet of 11 piling rigs, mainly in the residential and commercial sectors in London and the southeast, a region currently under-served by Nottinghamshire-based Van Elle.
In the year to June 2022 it made pre-tax profit of £120,000 on revenue of £22m. However in its latest financial year revenue dipped to £15m and it made an operating loss of £200,000.
The assets subject to the acquisition had a net asset value of approximately £3.7m as at 30th June 2023.
Van Elle turned over £118m in the year to April 2022.
Van Elle said that Rock & Alluvium represented “a strategic and complementary acquisition” that will be integrated within its general piling division.
Concurrent with the acquisition, Van Elle has sealed a five-year trading agreement to provide Galliford Try with piling and geotechnical services. This is expected to generate revenues of at least £10m a year for Van Elle.
Van Elle is paying an initial £1.8m, and a deferred consideration payment of £2.0m to be paid in 12 months.
Van Elle chief executive Mark Cutler said: “This deal accelerates our expansion into London and the southeast 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 & Alluvium will prove to be an excellent addition to the group.”
Galliford Try chief executive Bill Hocking said: “Rock & Alluvium has formed an important part of our group for the past 34 years, and made a notable contribution to some high profile and complex schemes since that time.
“Van Elle is a well-respected contractor within the piling industry and its ownership of Rock & Alluvium will allow the business to grow. We thank the team at Rock & Alluvium and look forward to furthering our relationship with Van Elle to bring benefit for all our stakeholders.”
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