Steel firm Severfield has bought structural steelwork business Harry Peers & Co, whose customers include Shell, BP, MoD and Centrica, for an initial consideration of £18m.
Thirsk-based Severfield said the acquisition will be earnings enhancing in its first full year of operation.
Harry Peers & Co is a leading structural steelwork business in the nuclear, process industries and power generation sectors
A performance-based deferred consideration is in place, which could increase the purchase price by up to £7m, which would be payable in late 2020.
Severfield said the acquisition will significantly extend its current capabilities into attractive, complementary market sectors and will enhance its position as the UK’s broadest structural steel services group.
It said Harry Peers commands a niche, well-established and trusted position with blue chip customers in the nuclear sector, including both the defence and commercial sectors.
Severfield's chief executive Alan Dunsmore said: “Harry Peers’ experience in specialist, highly regulated, non-cyclical markets will enhance our future growth plans through expanding the group’s capabilities and sector reach.
“We believe Severfield is best placed to help Harry Peers continue its profitable growth trajectory, through increased scale and investment and together with Harry Peers’ strong management team we have a real opportunity to develop a broader position within the UK structural steel services market.”
Severfield is the UK's market leader in the design, fabrication and construction of structural steel, with a total capacity of 150,000 tonnes of steel per year.