Austrian construction group Strabag has agreed to acquire UK-based ground engineering contractor Van Elle for £59m, marking its second takeover within a week as it accelerates expansion in the British market.
Van Elle acquisition, led by Strabag’s UK division and expected to close in June, involves a recommended offer of 53.3p per share for the AIM-listed company. Van Elle, which listed in 2016, is among the UK’s largest geotechnical and ground engineering specialists, reporting a turnover of £130.5m and employing around 650 people. The acquisition aligns with Strabag’s stated ambition to establish a “vertically integrated market leader in construction services” in the UK. The group, which operates across 80 countries, is currently engaged in major projects including HS2 and the £3bn Haweswater Aqueduct Resilience Programme in North West England, while also pursuing growth in Australia following its earlier purchase of Georgiou.
Under the terms of the Van Elle acquisition agreement, Van Elle will continue operating under its existing brand, retaining its management team and workforce. A spokesperson for Strabag said: “To ensure continuity and unlock future potential, Strabag UK does not intend to make any material headcount reductions in respect of the management and employees of Van Elle.” Joint managing directors Andrew Dixon and Simon Wild added: “We are confident that the combination (of the two firms) will drive additional value through our complementary client relationships and end markets.” Frank Nelson, chairman of Van Elle, said the offer represented a “significant premium” and would provide “ Van Elle’s customer base with a supportive sector specialist owner focused on developing its product offering”.
Separately, Strabag confirmed it had also acquired Crofton Engineering, a Cambridgeshire-based structural steelwork specialist. The company will retain both its name and senior leadership following the transaction.
