Severfield buys firm which is working on improvements at Victoria Station

Severfield, has entered into an agreement to acquire all the share capital of DAM Structures Limited, a steel fabrication company for a net initial consideration of £12.0m.

A further maximum deferred consideration of £7.0m is payable in 2022, together with a performance-based contingent consideration of up to £8.0m, which would be payable over a five-year period.

In a statement, Severfield said: "The acquisition will give Severfield immediate access to attractive, complementary market sectors with strong growth potential including the propping, railway and steel piling markets. Combining the businesses will enhance Severfield’s position as the UK’s broadest structural steel services group.

"The acquisition will provide the group with new clients from which to grow its existing services and gives Severfield a platform to widen its supply chain into its existing client base."

"In addition to its core steel fabrication markets, DAM Structures operates in the propping, railway and steel piling markets.

"Within the railway sector, there are significant opportunities for growth in the UK from Network Rail electrification programmes and elements of the HS2 project that are not currently addressed by Severfield, such as temporary and permanent tunnel work. All these opportunities will complement the group’s existing expertise in bridges and stations.

Alan Dunsmore, Chief Executive Officer 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."

The vendors were advised by a team from the Leeds office of Grant Thornton led by Corporate Finance Director Duncan Morpeth supported by Jim Whittaker, John Whitney and James Boreman

The firm’s also provided tax advice led by Douglas Tailby and Josh Smailes.

Martin Frost, corporate partner at law firm Andrew Jackson Solicitors LLP, assisted by commercial property partner Helen Mellors and corporate assistant Liam Hessay also provided advice.

Advisers to Severfield plc included Gordons (legal): James Fawcett, PWC: Will Oxley, Ben Ferguson, Nicholas Breeze.

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