Strabag Acquires Piling Expert Van Elle in £59m Deal

Strabag UK has initiated a significant acquisition by agreeing to purchase Van Elle, a leading geotechnical contractor, for £59 million. This deal involves a cash offer of 52.3 pence per share, marking a substantial 58.5% premium over Van Elle’s AIM-listed share price.

Strategic Move for Strabag

This acquisition reinforces Strabag’s ambition to create a vertically integrated construction platform within the UK. By adding Van Elle’s specialized geotechnical capabilities, Strabag aims to enhance its offerings across key sectors.

About Van Elle

Van Elle stands as one of the UK’s foremost geotechnical and ground engineering contractors. The company operates on a national level and employs approximately 650 staff. In the previous year, Van Elle reported revenues of £130.5 million, achieving an underlying profit before tax of £5.3 million.

Leadership Insights

Andrew Dixon and Simon Wild, the joint managing directors of Strabag UK, highlighted the significance of this acquisition. They stated it aligns with Strabag SE’s growth strategies and enhances its role as a market leader in construction services. They expressed confidence that this merger would offer enhanced value through interconnected client relationships and markets.

Van Elle’s Support for the Deal

Van Elle’s board has unanimously supported the acquisition. Frank Nelson, chairman of Van Elle, noted that this offer represents a significant premium. He emphasized that it provides shareholders with assured cash consideration while allowing a sector specialist to guide Van Elle’s future development.

Acquisition Support

Strabag has already received backing for about 45% of Van Elle’s shares through irrevocable commitments and letters of intent. The completion of this takeover is anticipated by the end of June.