A Baltic bolt-on awaiting completion

SigmaRoc, the European lime and minerals group, has a pending Acquisition that is due to close before the year end: AB Dolomitas, a Lithuanian dolomite producer founded in 1964. (LSE:SRC) The deal was announced on 7 September 2026, alongside interim results, and reaffirmed in the group's third-quarter update of 21 October, which said completion was expected later this year. No newer announcement from SigmaRoc had been published by the close on 3 November.

The terms

SigmaRoc agreed to pay €110m on a debt-free, cash-free basis, plus a further €8m for non-core assets, including industrial land near the port of Klaipeda that the company may develop for aggregates import, export or processing. (LSE:SRC) The €110m comprises €90m in cash and €20m in new SigmaRoc shares, issued at the sellers' request. A total of 13,333,334 vendor shares will be issued at 129p, the four-week volume-weighted average to 3 September, and the sellers are locked in for 12 months. The cash will come from existing resources. Completion depends on regulatory consents and is expected in Q4 2026.

What Dolomitas brings

For the year to 31 December 2025, Dolomitas reported Revenue of €70m and EBITDA of €18m, a Margin above 25%. (LSE:SRC) It produces about 3.5m tonnes of dolomite a year across more than 40 product variations, including mineral filler, and runs its own truck fleet, rail wagons and terminals in major Lithuanian cities. Dolomite, a magnesium-rich form of high-grade limestone, can serve all of SigmaRoc's core segments and is used in so-called green steel production, which the chief executive described as nascent. The sellers, who have owned and developed the Business for close to twenty years, will become SigmaRoc shareholders and said they would remain supportive of the enlarged group.

On our calculation, the €110m price represents about 6.1 times Dolomitas's 2025 EBITDA. (LSE:SRC) SigmaRoc expects the deal to enhance Earnings in 2027. The business will sit within the group's existing Baltic platform, which already includes quarrying and distribution in Lithuania, Latvia and Estonia.

Scale and dilution

Set against the group, the addition is meaningful but not transformative. Analyst consensus cited by SigmaRoc on 21 October was for 2026 revenue of £1,074m and underlying EBITDA of £280m. At recent exchange rates, our rough estimate is that Dolomitas's 2025 EBITDA equates to around 5% to 6% of that consensus figure. The vendor shares would lift the share count from 1,114,854,530 to 1,128,187,864, roughly 1.2% dilution on our arithmetic. The 129p issue price compares with a 3 November closing price of 127.5p, based on LSE delayed data.

Balance sheet capacity

At 30 June 2026, net Debt including Lease liabilities was £462.6m and covenant Leverage was 1.66 times, down from 2.04 times a year earlier. During the first half the group put in place an €825m investment-grade Facility with a €300m accordion. The chief executive said the Balance Sheet retains plenty of capacity for further acquisitions. Interim consensus, cited in September, pointed to year-end leverage of 1.4 times, although that predates the cash outflow for Dolomitas.

Risks and next steps

Risks include regulatory approval timing, integration, currency translation from euros, and dependence on Baltic construction and industrial demand. Reserve life also needs clarity: the September announcement cited about 25 years of reserves and resources with potential for roughly 20 more, while the October update referred to around 45 years in total. Investors should treat the extended figure as including resources not yet secured.

The next expected milestones are completion and admission of the vendor shares, both anticipated in the fourth quarter, followed by full-year results.