SigmaRoc PLC (AIM:SRC) has acquired Johnston Quarry Group and Guiting Quarry for an initial cash consideration of £35.5mln, adding a specialist in aggregate products that are typically used in infrastructure projects as well as unique Cotswolds Ironstone and Bath Stone that are used in high-end housing applications.
The acquisition will be funded by SigmaRoc’s existing resource and will include the assumption of Johnston Quarry Group debt.
Johnston Quarry Group, or JQG, is a specialist quarried materials supplier producing construction aggregates and premium quality building stone, as well as agricultural lime for soil improvement.
The business operates eight quarries and two separate processing sites located across the South West, Oxfordshire and Lincolnshire.
JQG has access to 86 million tonnes of freehold and leasehold reserves and resources giving it an average life of mine of over 40 years.
For the 12 months to 30 September 2021, JQG reported revenue of £14.7mln, generating EBITDA of £5.9mln and £3.6mln profit before tax.
The acquisition is expected to be immediately earnings enhancing.
On completion of the acquisition, Nicholas Johnston, JQG's founder, will remain available in an advisory capacity as required for smooth integration.
As part of the acquisition, SigmaRoc has also conditionally agreed to purchase two further quarries, together with additional mineral reserves, for a total potential consideration of £14.5mln.
These additional sites have a strategically attractive location relative to JQG and will increase the business' footprint and market access.
"Johnston Quarry Group fits the SigmaRoc model well and I believe the benefits gained will be mutual,” said David Barrett, chairman of SigmaRoc.