Van Elle Holdings has bought Galliford Try’s specialist piling business Rock & Alluvium in a deal worth up to £3.8m.
Van Elle made an initial payment of £1.8m, with £2m payable 12 months from completion, subject to completion accounts. The company will acquire 11 rigs and take on the skilled workforce of Rock & Alluvium. The acquisition is expected to close in mid-November.
Mark Cutler, chief executive of Van Elle, said: “This deal accelerates our expansion in London and the South East by bringing to the group a highly regarded business and team with a proven track record, a strong order book and fleet well invested..”
The company will also enter into a five-year commercial agreement to provide geotechnical and piling services to Galliford Try, which is estimated to be worth more than £10 million a year.
Rock & Alluvium was founded in 1963 and became part of Galliford Try in 1989. The Surrey-based subcontractor specializes in residential and commercial projects in London and the South East.
It generated revenue of £15.5m and an operating loss of £200,000 in the year ending June 30, 2023, according to Van Elle.
Van Elle overcame Construction News’ Earth Engineering Contractors Specialist Index Ranking both in 2022 and 2021.
the signature increase your pre-tax profit in the year ending April 2023 almost 50% on the previous year, from £3.6m to £5.4m. Turnover also grew to an all-time high, from £125m to £149m. Van Elle employed an average number of 648 employees, up from 601 the previous year.
The company is currently installing rigid inclusions at a storage complex in Scotland under the Robertson Group.
Galliford Try chief executive Bill Hocking said: “Van Elle is a well-respected contractor within the pile industry and its ownership of Rock & Alluvium will enable the business to grow.
“We thank the Rock & Alluvium team and look forward to enhancing our relationship with Van Elle to bring benefits to all of our stakeholders.”
