Nottinghamshire-based ground engineering contractor, Van Elle, has acquired ScrewFast Foundations Limited, a helical piling and steel modular foundations company, for a maximum consideration of £3.68m.
An initial consideration of £1.76m is payable in cash on completion, with up to a further £1.92m of deferred and performance-based cash consideration payable in August 2023.
All employees, including the entire management team led by Managing Director Dan Dye, will join the Van Elle.
For the twelve months ended 30 May 2020, ScrewFast recorded revenues of £5.9m, EBITDA of £0.65m and a profit before tax of £0.36m. Net assets at 31 March 2021 were £1.85m and the order book stood at £5.1m.
Mark Cutler, Chief Executive Officer, Van Elle, said: “This is a very exciting, complementary acquisition focussed on our higher margin, specialist piling activities which strengthens our leading position in growth markets such as highways and rail.
“ScrewFast has an established client base and proven track record of highly specialist services and will support the Group in the delivery of its medium-term strategic objectives. The two businesses have a similar culture and ethos which is very important to us, and we look forward to working with the ScrewFast team as we welcome them into the Group.
“We continue to be encouraged by the Group’s progress, with expectations for the year unchanged from those set out in January. Whilst we remain cautious, given that the recovery in some of our markets is still at an early stage, we are very confident that the Group is well positioned to benefit from the continued execution of our growth strategy.”
Dan Dye, Managing Director, ScrewFast, added: “We have long identified Van Elle as the ideal owner to support our growth potential.
“ScrewFast is an innovative and specialist business that fits well both culturally and technically into the diverse range of end-to-end services and market prospects offered by Van Elle, who we have worked alongside on several recent projects. My whole team is very excited by the opportunities ahead.”