Severfield bosses described Dam Structures as 鈥榟ighly complementary鈥� to their existing business.
Where Severfield is noted for structural steelwork and big beams, particularly in high rise and stadium applications, Dam Structures鈥� business is focused on temporary and permanent works ranging from plunge columns, plated beams, box sections, tower crane grillages, small and large diameter propping works, fa莽ade retention towers, portal framed structures, mezzanine floors, heavy duty stairs and minor bridges. 聽Its customers include Laing O鈥橰ourke, Bryne Bros and Mace.
Dam Structures is also expected to give Severfield access to the rail electrification work that is planned over the next 10 years.
Severfield chief executive Alan Dunsmore said: 鈥淭his 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.鈥�
Dam is based near Bridlington 鈥� about 50 miles from Severfield鈥檚 Thirsk home 鈥� and has 76 employees. It has a freehold 50,00 sq ft workshop on a 19-acre site, capable of processing up to 300 tonnes of structural steelwork per week. In the year to 31st October 2019 it turned over 拢22.3m and made a pre-tax profit of 拢1.9m. It has net assets of 拢14.2 million
Severfield is paying an initial 拢12m to acquire 100% of Dam Structures on a cash free, debt free basis, with up to 拢7m payable in 2022 and up to 拢8m more over five years depending on performance.
Dam Structures鈥� 55 production staff, including chief executive and former owner Phil Cook and managing director Josh Emmerson, will remain with the business.
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