Structural steel group, Severfield, has acquired DAM Structures, a Yorkshire-based innovative steel fabrication company, for a total of £12 million.
The deal, which includes a deferred consideration of £7 million, will be funded by a combination of cash reserves and a term loan.
It will provide Severfield with new clients from which to grow its existing services and gives it a platform to widen its supply chain into its existing client base.
“This is a very exciting, highly complementary acquisition which will help the Group continue to deliver on its strategic growth objectives,” said Alan Dunsmore, CEO of Severfield.
“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.”