Yorkshire steel group agrees £12m deal for Humber manufacturing acquisition
A Yorkshire steel group has announced that it has agreed on a £12m deal for the acquisition of a Humber manufacturing company.
Severfield, a structural steel group, has entered into an agreement to acquire 100 per cent of the share capital of DAM Structures, a steel fabrication company for £12m on completion, with a deferred consideration of £7m.
The acquisition will give the company new clients, allowing it to grow its existing services.
It will be funded by a combination of cash reserves and a term loan, and is anticipated to be earnings enhancing following its first full year of operation.
Alan Dunsmore, CEO of Severfield, commented: “This is a very exciting, highly complementary acquisition which will help the group continue to deliver on its strategic growth objectives.
“DAM Structures will provide us with access to existing and new customers earlier in the construction process as well as access to new market sectors with strong growth potential including the growing rail electrification sector.
“DAM Structures has an established client base and proven track record of delivering quality services and will fit in well with the Severfield culture and team.
“We look forward to working with the DAM Structures management team on building new business opportunities together and driving future growth from within the combined group.”
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