STARBAG UK has announced plans to acquire UK geotechnical and ground engineering contractor Van Elle.
Under the terms of the proposed acquisition agreement, each Van Elle shareholder will be entitled to receive £0.52 in cash, which values the entire issued and to be issued share capital of Van Elle at approximately £58.8 million on a fully diluted basis.
The STRABAG UK Board states that it believes that the acquisition of Van Elle will contribute towards its goal of diversification across markets, sectors, clients and scale and ultimately provide a highly valued and specialist capability, optimising delivery assurance and value for money for its clients and stakeholders.
Commenting on the acquisition, Andrew Dixon and Simon Wild, joint managing directors of STRABAG UK, said: “The acquisition of Van Elle is an important step in STRABAG SE’s growth strategy, strengthening our position as a vertically integrated market leader in construction services. Van Elle brings a highly regarded ground engineering and geotechnical platform with an established UK market position that complements our existing operations, and we look forward to continuing to deliver for Van Elle’s customer base. We are confident that the combination will drive additional value through our complementary client relationships and end markets.”
Frank Nelson, chairman of Van Elle, added: “Formed in 1984, Van Elle is one of the UK’s largest specialist geotechnical engineering contractors. Across its diverse end markets including residential and housing, infrastructure and regional construction, the Van Elle Group is proud to have delivered over 1,000 projects over the previous financial year.
“Van Elle’s life as a quoted company is a short part of that history, however, a period containing some significant global events. While strongly positioned in a number of key markets, broader sector and macro-economic issues have impacted value creation opportunities.
“Given the ongoing cycle, the Van Elle Board believes that the offer not only represents a significant premium, it also provides shareholders with the certainty of cash consideration and Van Elle’s customer base with a supportive sector specialist owner focused on developing its product offering.
“On behalf of the Van Elle Board, I would like to acknowledge the part played by colleagues throughout the Van Elle Group to the development of the business, and offer my sincere thanks and appreciation for their ongoing hard work and continued commitment to the delivery of our strategic objectives.”
The acquisition is expected to become effective by the end of June 2026.