Severfield Acquires Yorkshire based DAM Structures
Severfield plc has announced the acquisition of Yorkshire based innovative steel fabrication company DAM Structures. The company's manufacturing capabilities as specialist steel fabricators of both temporary and permanent works range from plunge columns, plated beams, box sections, tower crane grillages, small and large diameter propping works, façade retention towers, portal framed structures, mezzanine floors, heavy duty stairs and minor bridges. The company operates from its bespoke premises in Carnaby and can currently process up to 300 tonnes of structural steelwork per week for distribution across the UK. DAM Structures currently has 76 employees.
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. For the twelve months to 31 October 2019, DAM Structures recorded audited revenues of GBP 22.3 million and a profit before tax of GBP 1.9 million. The value of the gross assets as at 31 October 2019 was GBP 14.2 million.
The Acquisition consideration will be funded by a combination of cash reserves and a term loan. The Acquisition is anticipated to be earnings enhancing in its first full year of operation.