Double acquisition agreed by Barnsley steelwork firm

Billington Holdings Plc, the structural steel and construction safety solution specialists, has conditionally agreed to acquire property located at Shafton, from Sabler Enterprises Limited for £2.5m and equipment and other assets, also located at Shafton, from Sherling Steel (UK) Ltd for £2.38m.

The planned acquisition would give the Barnsley-based company access to new machinery and increased capacity. After completion, the facilities will be adapted for optimum production and, within three years, the directors think that the new facilities will significantly increase the output of Billington’s structural steelwork divisions.

At 30 June 2015 Billington had a cash position of £6.36m. The double acquisition will be partially funded through the company’s own cash resources and partially from a commercial mortgage from Billington’s bankers, HSBC.

Billington has entered into a conditional agreement to acquire a 25 acre site from Sabler Enterprises Limited. The site, which is partially occupied by several long term tenants, includes two industrial buildings with a combined useable area of 181,000 sq ft. The acquisition agreement is contingent upon a number of conditions being satisfied including completion of satisfactory environmental due diligence and the transfer of the existing leases along with the grant of certain new leases on common market terms.

Billington Structures Limited, the wholly owned subsidiary of Billington, has also entered into a conditional agreement to acquire equipment and other related assets from Sherling Steel (UK) Ltd. The key assets are steel processing machinery and associated lifting equipment. The acquisition is conditional on the completion of the acquisition agreement with Sabler.

Billington will utilise the site and equipment at Shafton to enhance its structural steel divisions located at Barnsley and Bristol.

When the double acquisition is completed, there would be a period of transition to enable a suitable workforce to be recruited that possesses the required skillset for the anticipated form of fabrication that will be offered from this facility.

Mark Smith, chief executive officer, commented: “It is an exciting period of change for Billington and one that the Directors believe will further strengthen the Company’s market position through increased capabilities, capacity and product offerings”.