Van Elle Holdings has announced its agreement to purchase Rock & Alluvium for £3.8 million. This strategic acquisition of the piling specialist will allow Van Elle to establish a presence in the south east region of England.
New Trading Agreement
With the acquisition of Rock & Alluvium, Van Elle anticipates annual revenues of over £10 million. This new five-year trading agreement is expected to further strengthen Van Elle's position in the market.
Financial Details
Van Elle will pay an initial amount of £1.8 million, followed by a deferred payment of £2 million after 12 months from completion. Both payments will be funded from the company's existing cash and banking facilities. Despite these financial commitments, Van Elle's balance sheet remains strong, and it expects to be in a net-cash position after the transaction.
Support for Further Growth
This acquisition not only bolsters Van Elle's capabilities but also provides the company with headroom for organic and inorganic investment opportunities. The board is focused on maintaining discipline in assessing potential acquisitions to ensure alignment with the company's growth strategy.
Partnership with Galliford Try
Under the agreement with construction group Galliford Try, Van Elle will offer piling and geotechnical services. This collaboration further enhances Van Elle's position and expands its reach in the industry.
Conclusion
Van Elle Holdings' acquisition of Rock & Alluvium signifies a significant step forward in its growth strategy. With a strengthened presence in the south east and an anticipated boost in annual revenues, Van Elle is poised for further success.
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