Ground engineering contractor Van Elle is to acquire piling specialist Rock & Alluvium for up to £3.8 million.
Leatherhead-headquartered Rock & Alluvium will be integrated into Van Elle’s general piling division, and will help the Group to expand into the South East.
An initial payment of £1.8 million will be made by Van Elle, followed by a deferred consideration payment of £2 million subject to completion accounts, payable 12 months from completion.
The piling specialist was established in 1963 and joined Galliford Try in 1989, with whom Van Elle has agreed to provide piling and geotechnical services over five years.
For the year ended 30 June 2023, Rock & Alluvium generated revenues of £15.5 million and an operating loss of £0.2 million. Its assets had a net value of £3.7 million.
The acquisition is expected to complete in mid-November.
“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,” said Mark Cutler, chief executive of Van Elle.
“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.”
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