£58.8m swoop: STRABAG moves to take Van Elle private

Van Elle, the Nottinghamshire groundworks and piling business, is set to be acquired by STRABAG UK in a recommended all-cash deal valuing the business at approximately £58.8m.

Under the terms of the agreement, shareholders will receive 52.3p in cash for each share, representing a 58.5% premium to the closing price of 33.0p on 8 April 2026. The offer also reflects a 49.5% premium to the six-month volume weighted average price and a 45.9% premium to the 12-month average.

The acquisition is expected to become effective by the end of June, subject to shareholder and court approvals.

STRABAG UK, part of the wider STRABAG SE, operates in the construction and civil engineering sector, delivering major infrastructure, building and engineering projects. The company said the deal strengthens its position in the UK market and adds complementary ground engineering capabilities, particularly across the residential, water, energy and transport sectors.

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.”

Van Elle, founded in 1984 and listed on AIM since 2016, has expanded its presence in higher-growth sectors such as energy and water. However, the board believes that subdued investor sentiment towards smaller quoted companies and limited share liquidity have constrained its valuation. The directors also cited the cost and management time associated with maintaining a stock market listing as factors in supporting the transaction.

Frank Nelson, chairman of Van Elle, said: “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 Van Elle directors have unanimously recommended that shareholders vote in favour of the scheme. STRABAG UK has already secured irrevocable undertakings and letters of intent representing around 45% of the company’s issued share capital, including support from major shareholders such as Rockwood Strategic and NR Holdings.

If approved, the transaction will result in Van Elle being delisted from AIM and operating as part of the STRABAG Group.

Led by public company advisory partner Alistair Cree and principal associate Annika Unsworth, Eversheds Sutherland acted as sole legal adviser to Van Elle Holdings.

The wider team comprised partners Richard Surtees (employee incentives), Barney Smedley (finance) and Peter Harper (competition), alongside Associates Vibudha Hebballi and Laura Murton (corporate), Hugh Durant (competition) and Kyron Vanterpool (finance).