Van Elle, the Nottinghamshire ground engineering contractor, has agreed to acquire the entire issued share capital of Rock and Alluvium, a piling specialist, for a total consideration of up to £3.8m on a cash-free, debt-free basis, subject to completion accounts.
Based in Leatherhead, Rock and Alluvium was established in 1963, joined Galliford Try in 1989, and has built a strong reputation primarily serving the residential and commercial sectors in London and the South East.
The business operates a well invested fleet of 11 piling rigs which complements Van Elle’s existing capital investment programme, has a highly trained workforce and an experienced management team.
Rock and Alluvium represents a strategic and complementary acquisition for the Group and will be integrated within Van Elle’s General Piling Division. 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 has also entered into a five-year trading agreement with Galliford Try under which Van Elle will provide piling and geotechnical services. It is anticipated the trading agreement will generate revenues in excess of £10m per annum.
Mark Cutler, Chief Executive of Van Elle, said: “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.
“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.
“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 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.”
For the year ended 30 June 2023, Rock and Alluvium generated revenues of £15.5m and a draft operating loss of £0.2m. The assets subject to the acquisition had a net asset value of approximately £3.7m as at 30 June 2023.
The acquisition is expected to complete in mid-November 2023.
