Suffolk-based Poundfield Products acquired by SigmaRoc in £10.25m deal
PUBLISHED: 16:32 13 December 2017 | UPDATED: 17:33 13 December 2017
Construction materials group SigmaRoc has agreed a deal worth up to £10.25m to acquire Suffolk-based pre-cast concrete specialist Poundfield Products.
SigmaRoc, which is based in the Channel Islands and listed on AIM, the smaller companies section of the London Stock Market, will pay an initial £9.5m in cash for Poundfield, with a further £750,000 payable in a year’s time subject to conditions.
SigmaRoc said that the deal, which will be funded by the placing of new shares, was expected to be earnings positive in the first full year of ownership. Poundfield, which is based at Creeting St Peter, near Ipswich, generated revenues of £7.294m in the year to December 31, 2016, and a pre-tax profit of nearly £661,000.
SigmaRoc said it would “look to maximise synergies” following the deal but added that all 75 of Poundfield’s employees would transfer to the group.
SigmaRoc chief executive Max Vermorken said: “The acquisition of Poundfield, a specialist in patented concrete products, is a welcome addition to our growing portfolio of assets.
“It will join our existing UK precast cluster which includes TopCrete, the specialist precast concrete business we acquired in October 2017.”
SigmaRoc’s executive chairman, David Barrett, added: “This acquisition marks another milestone in our buy-and-build strategy, and concludes a successful year for the SigmaRoc group. We continue to seek out businesses where we believe we can create significant value for shareholders, and the pipeline for future acquisitions in 2018 is already strong.”