Strabag UK has agreed a £58.8m cash acquisition of ground engineering specialist Van Elle, in a deal valuing the AIM-listed business at 52.3p per share.
In a London Stock Exchange announcement, the Austrian-owned contractor confirmed the transaction remains subject to shareholder and court approval.
The offer represents a 58.5 per cent premium to Van Elle’s closing share price of 33.0p on 8 April, and a 45.9 per cent uplift on its 12-month average valuation, underlining the strategic intent behind the acquisition.
Van Elle’s board has stated its intention to recommend the deal unanimously. Directors holding 1.5 million shares—equivalent to around 1.4 per cent of the company’s issued share capital—have already committed to voting in favour.
Strabag UK has also secured significant backing from major shareholders, including irrevocable undertakings from Rockwood Strategic and NR Holdings, alongside letters of intent from Otus Capital Management and Peter Gyllenhammar AB. Combined, these commitments represent 48.7 million shares, or approximately 45.0 per cent of Van Elle’s issued share capital.
Strategically, Strabag UK said the acquisition would strengthen its vertically integrated construction model, adding specialist ground engineering and geotechnical expertise to its UK operations. The contractor highlighted opportunities for cross-selling across key sectors including residential, water, energy and transport, where early-stage groundworks and foundation engineering are critical components of project delivery.
Van Elle’s board indicated that a strategic review had been underway since the second half of 2025. The company cited weak share liquidity and subdued investor sentiment towards smaller quoted UK firms as factors limiting the potential for achieving a stronger market valuation. In addition, the board noted that the financial and administrative burden of maintaining a public listing had become disproportionate for a business of its size.
Following discussions with several parties, Van Elle received a formal proposal from Strabag UK on 12 February 2026. The offer was subsequently progressed, reflecting both the immediate value presented to shareholders and the longer-term strategic alignment between the two businesses.
Van Elle chair Frank Nelson said the deal provides shareholders with certainty in a challenging market environment, while positioning the company for future growth under new ownership. He described the acquiring group as “a supportive sector specialist owner”.
The transaction is being implemented through a scheme of arrangement, which will require approval from a majority in number of shareholders voting at the court meeting, representing at least 75 per cent in value of the shares voted. In addition, resolutions at a general meeting must receive support from at least 75 per cent of votes cast.
A scheme document is expected to be issued within 28 days of the announcement, unless an extension is agreed with the Takeover Panel. Subject to the necessary approvals, the acquisition is anticipated to complete by the end of June 2026.
