Shares in SigmaRoc have been suspended after the building materials firm announced that it had agreed to a group of European lime businesses from CRH for up for €1bn (£870m), which will be classed as a reverse takeover.

The deal, which is subject to regulatory approval, includes 16 operating locations across Ireland, the UK, Germany, Czech Republic and Poland.

The first phase of the deal set out by the firm, which is headquartered in London, include acquiring firms in Germany, Czech Republic and Ireland, which is expected to close in early 2024. Overall, this phase will cost €745m (£645m).

The remaining phases, which are for deals in the UK and Poland, will close later in the year.

The firm will also draw down €350m (£304.5m) in loan agreements, which will go towards funding the first part of the deal. The financing includes a five-year term loan worth €600m (£522.1m), a €125m (£108.8m) one-year bridge loan and a €150m (£130.5m) revolving credit facility.

SigmaRoc generated a total of €559.5m (£486.5m) in sales and earnings before interest and tax, as well as amortisation of €125.7m (£109.4m).

The firm has said that acquisitions "represent an opportunity to become Northern Europe’s leader in line", having built up revenue of £1bn in 2022 and an underlying EBITDA of £211m.

The acquisitions are expected to deliver revenue growth opportunities and cost synergies, resulting in at least €30m (£26.1m) of EBITDA.

---