SigmaRoc has locked in the call option to acquire CRH’s lime operations in the United Kingdom.
The two companies entered into the deal on November 22 last year before SigmaRoc confirmed the call option for a total consideration of €155 million ($256.9 million AUD).
“As announced on 23 November 2023, alongside the conditional acquisition of CRH’s lime businesses in Germany, Czech Republic and Ireland, the company entered into the call options which granted it the right to acquire the UK Target, as well as CRH’s lime operations in Poland (the “Polish Target”) at a future date,” SigmaRoc said in a statement.
“Following completion of the acquisition of the deal one Targets on January 4 2024 and of the separation process in the UK, the Company has issued notice to exercise the UK Call Option.”
The UK call option includes CRH’s Tarmac Shelfco Limited entity. Founded in 1891 and headquartered in Buxton, Tarmac Shelfco is a leading producer of Lime Products in the UK area.
“The business operates from sites in Tunstead and Hindlow, with a total of five permitted kilns. In the year ending 31 December 2022, the UK Target generated revenue of €105.4m and operating profit of €19.5m. The consideration payable for the Deal 2 Target will be satisfied by a draw down under the new Facilities,” SigmaRoc said in a statement.
Lime and limestone are key resources in the transition to a more sustainable economy. New applications for lime and limestone products as part of a drive for sustainability include the production and recycling of lithium batteries, the decarbonisation of construction including through substitution of cementitious material and new building materials, and environmental applications including lake liming, air pollution and direct air capture.
The lime market is expected to continue to grow and to be worth €1.9 billion ($3.1 billion AUD) in 2031 across the Enlarged Group’s markets.
“(This decision provides) an opportunity to become Northern Europe’s leader in lime and a key supplier to the structural growth markets critical for the green transition,” SigmaRoc said in a statement.
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