SigmaRoc acquire a significant stake in leading quarrying group Gerald D. Harries (“GDH”)
[London:UK April 15th] SigmaRoc plc is pleased to announce it has acquired a 40 per cent. equity interest in GDH, a significant quarrying and construction materials group located in South Wales. It intends to acquire the remaining 60% share by mid 2020.
GDH is one of Wales’s largest independent suppliers of aggregates – based in West Wales, it operates out of six granite and limestone quarries – incorporating three asphalt plants. six concrete plants, and a wharf operation, as well as a civil engineering division delivering significant infrastructure projects.
The business was founded by Mr. Gerald D. Harries and built into the foremost independent regional supplier by his son Ian Harries, who will continue as Chairman of GDH going forward.
For the calendar years ending 31 December 2015, 2016 and 2017, GDH averaged revenues of approximately £23.4m, adjusted EBITDA of approximately £3.4m. GDH held assets with a book value of approximately £26m at the end of 2017 including approximately 80m tonnes of reserves and resources, sufficient for an approximated 100 years of quarrying life.
Following the acquisition, David Barrett and David McClelland will join the GDH board, alongside Ian Harries and Janet Philips. The investment with GDH will be the foundation for SigmaRoc’s third platform and incorporate Foelfach High PSV quarry acquired earlier in 2018. As with other platforms, it will be operated with considerable local autonomy, preserving local employment, in order to ensure local customers continue to benefit from the service and quality only truly delivered by independent suppliers.
SigmaRoc intends to fund the transaction through internal resources and existing debt facilities. SigmaRoc expects the Group’s Net Debt to EBITDA ratio to remain close to the current level of 2:1.
Ian Harries, Chairman GDH, commented:
“Having been approached by several companies to buy the business - Sigmaroc was the only one we engaged with directly due to their business ethos and commitment to our workforce which has over the years been a key factor in driving the business forward. We are very excited to by SigmaRoc’s investment in us which will allow us to continue the growth of the business into the future, creating job opportunities and continuing to serve our longstanding customers and the strength and depths of Sigma will enable us to drive our business further for which the process has already commenced”
David Barrett, Executive Chairman, commented:
“GDH is a great business with a very substantial asset footprint spanning across South Wales. GDH will be the heart of our South Wales platform. It is a business with a long history of success, and much future potential. Ian Harries’ continued involvement will assist us in delivering growth across the Platform for the benefit of our shareholders."
Max Vermorken, CEO, commented:
“I am extremely proud of what our small team has been able to achieve within only a short space of time. With GDH as part of the Group, we will operate nearly a dozen quarries, 100m tonnes of reserves and resources, close to 500 people employed, with significant skill, drive and enthusiasm within the various management teams.”