Cape in £4m linings acquisition

Cape, which has operations in Wakefield but derives more than two-thirds of its profit from outside the UK, has snapped up York Linings International, a refractory linings design and installation contractor from its owner-managers, for an initial sum of £4m.

York Linings designs and installs refractory linings to large industrial assets both in the UK and in the Gulf, the Middle East and Eastern Europe. It has 90 staff and turnover of more than £15m. In a statement Cape said the deal provided an “excellent, complementary fit”.

It means Cape can offer an improved bundled service, strengthening its position in the supply chain with lower administration costs, the chance to capitalise on cross-selling opportunities between among the two firms’ clients and the prospect of expanding refractory lining services internationally, it added.

Martin May, chief executive of Cape, said: “The acquisition of York Linings is consistent with our strategy of increasing Cape’s service offering with selective bolt on acquisitions. York Linings has an unparalleled delivery reputation in the market.”