Severfield acquires Voortman Steel Construction Holding for €24m to boost European business

The move will also provide Severfield with greater access to a growing European market and open up attractive opportunities including access to the high growth electricity distribution sector and capabilities in design and build solutions for simpler structures, the company said.

The statement added: “Combining the businesses will enhance Severfield's position as one of Europe’s most diverse structural steel services groups.”

Alan Dunsmore, the chief executive, commented: “Severfield has been growing and developing its European presence over recent years and the acquisition of VSCH will help the group continue to deliver on its growth strategy.

"VSCH is highly regarded in the Netherlands, delivering a quality service to its large European customer base and has been growing its capabilities in the high growth electricity distribution sector and through new design and build (turnkey) solutions.

“We believe that the combination of Severfield and VSCH will result in a broadening of our service offering and an ability to grow in different sectors and geographies.

"Not only is the acquisition of VSCH anticipated to be earnings enhancing in its first full year of ownership, the transaction will further cement our position in a growing European market and provide opportunities for further profitable growth.

“We look forward to working with the VSCH management on building new business opportunities together and driving future growth from within the combined group.”

In a statement, Severfield added: “The acquisition provides Severfield with immediate access to new and attractive market sectors, providing the group with further market and geographical diversification outside its core UK operations.

"VSCH is highly regarded by its clients and the acquisition presents Severfield with a number of opportunities for further profitable growth, including access to a wider European client base and a platform to offer a wider range of services to its existing clients.”

The acquisition also provides Severfield with access to the fast growing Dutch electricity distribution market.

Severfield added : “This market has high barriers to entry and the current low carbon energy transition trend is driving demand for upgrading and expanding the electricity network in the Netherlands (and in other EU countries) over the next ten years.”

"VSCH has strong relationships with key contractors for these projects which, together with the projected market growth, presents opportunities to increase revenue over the coming years.”