SigmaRoc plc, the London-based AIM-listed construction materials group, has secured a £85m Syndicated Senior Credit Facility alongside a £40m uncommitted facility led by Santander UK and including several major UK and European banks in support of the group’s acquisition-led growth strategy.
The new facility will allow the Group to continue its buy-and-build strategy and reduce its like-for-like borrowing cost.
The funding will refinance UK and Belgian debt facilities and provide working capital headroom as well as committed acquisition facilities of £20m to provide further firepower for acquisition-led growth.
The transaction was led by Santander UK’s Strategic Debt Solutions team who structured the debt package every step of the way, from the maiden bilateral facility, subsequent upsizings and crucially through to the new international club facility. Covid-19 interrupted the deal temporarily, but the process recommenced in September, with the team working tirelessly to ensure a completion before the end of 2020.
Established in 2016, SigmaRoc operates on the UK mainland, Channel Islands and in Belgium and has customers throughout Europe.
Led by co-founders CEO Max Vermoken and Executive Chairman David Barrett, SigmaRoc follows a decentralised buy-and-build strategy, acquiring companies where the experienced management team feel they can add value through operational and structural improvements.
SigmaRoc became a Santander client in 2017 when the bank provided an initial £20 million to support the group’s buy-and-build strategy which has included the successful acquisitions of Ronez Ltd, Allen Concrete, Poundfield Products, CCP building Products and GD Harries among others.
In 2019, SigmaRoc acquired Carrieres du Hainaut SCA, a Belgian quarry business with 130 years’ experience manufacturing and extracting the iconic and unique Belgian blue limestone.
Following a difficult year for many businesses, SigmaRoc’s performance has remained resilient with the company reporting that for the eleven months to the end of November, revenues had risen 78% year-on-year to £114m, “significantly ahead of current market expectations”, while its results for the full year are also expected to be “comfortably ahead” of forecasts. In December, the company raised £12m from investors demonstrating support from equity markets.
Max Vermorken, SigmaRoc PLC, said: “We are glad to announce the completion of this refinancing, which has been driven by Santander’s efforts to create and lead an international banking club that will support us with future acquisitions as well as further international growth.”
Robert Purdew, Associate Director, Structured Finance Group: “SigmaRoc is a high growth UK-headquartered business with a well-formed and executed UK and international acquisitive strategy. We are very pleased to support the Company as mandated lead arranger in their refinance of existing debt commitments while giving them substantial firepower for future growth following on from market-leading financial performance during a challenging 2020.”