Van Elle has agreed to acquire the entire issued share capital of Rock and Alluvium Limited, a leading UK based piling specialist, for a total consideration of up to £3.8 million, subject to completion accounts.

Based in Leatherhead, Surrey, Rock and Alluvium was established in 1963, joined Galliford Try Holdings plc 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.

-- Advertisement --

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. The Board anticipates that the Trading Agreement will generate revenues in excess of £10m per annum.

The cash consideration payable for the acquisition comprises an initial payment of £1.8m and up to £2.0m deferred consideration, satisfied through the Group’s existing cash and banking facilities. The company's balance sheet remains strong and is expected to be in a net cash position post transaction, providing the Group with headroom to support further organic and inorganic investment opportunities.

For the year ended 30 June 2023, Rock and Alluvium generated revenues of £15.5m and an operating loss of £0.2 million.