UK-based ground engineering contractor Van Elle Holdings has expanded its operations in Scotland with the acquisition of Albion Drilling Holdings.
The strategic move strengthens Van Elle's position in Scotland and adds to its technical prowess in specialist piling and drilling services.
Albion Drilling, established in 1986 and headquartered in Stirling, has delivered complex infrastructure projects across Scotland. The company offers a diverse range of services, including technical drilling, geotechnical engineering and ground stabilisation.
Albion's acquisition by Van Elle brings a fleet of quality rigs, a workforce and a customer base that aligns with Van Elle's existing operations. The acquisition supports Van Elle's strategic focus on the energy sector.
With Van Elle currently engaged in two energy infrastructure projects in Scotland, Albion's track record in this area is expected to bolster the group's prospects, with plans to mobilise larger schemes by early 2025.
Albion will be integrated into Van Elle's specialist piling division, sharing a similar operating model.
The group plans to co-locate its facilities in Stirling to enhance its capability to address the demand for long-term opportunities in Scotland.
The Van Elle board anticipates that the acquisition will be earnings accretive from the first full year of ownership and foresees the potential for modest cost synergies.
Albion's workforce of 31 employees will join the Van Elle Group, and the business will retain the Albion brand.
The financial terms of the acquisition include an initial cash consideration of £2.1m ($2.72m), utilising the group's existing cash resources and funding facilities, and the issuance of 1,459,817 new ordinary shares valued at £0.6m.
A deferred cash consideration of £0.8m is contingent upon Albion achieving certain performance criteria up to 2026.
Van Elle Holdings chief executive officer Mark Cutler said: ‘‘The acquisition of Albion represents an exciting and important step towards the delivery of our growth strategy in the energy sector. It also broadens the group’s range of specialist capabilities and customer base. Albion is a highly regarded specialist contractor with complementary capabilities and an experienced workforce who will fit perfectly into the group’s operating structure.”
