Severfield buys fabricator Dam Structures in £27m deal

Grant Prior 2 years ago
Share

Steel giant Severfield has acquired fabricator DAM Structures Limited in a deal worth up to £27m.

Severfield will initially pay £12m cash for the business with a further £7m payable in 2022 and a performance based consideration of up to £8m over five-years.

DAM Structures had a turnover of £22.3m and a profit before tax of £1.9m for the twelve months to 31 October 2019 and the company’s gross assets were £14.2m. The firm employs 76 people.

The core business of DAM Structures involves on-site work with main contractors and ground and demolition contractors, often prior to the stage of project construction at which Severfield would typically become involved.

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

Severfield said: “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.

“The Network Rail electrification programmes also offer opportunities in the steel piling market for immediate and significant growth over the next ten years in England, Scotland and Wales.

The propping business of DAM Structures provides bespoke fabricated propping systems to demolition and groundwork contractors, an area of the business which also represents a growth opportunity for Severfield.”

Alan Dunsmore, Chief Executive Officer, Severfield added: “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.”

Latest news

Self-employed labour rates hit record high

Average weekly pay tops £1,000 in London, the South East and East of England.
2 days ago

Network Rail chief takes finance reins at Skanska

Meliha Duymaz is new Chief Financial Officer
2 days ago

Construction Manager of the Year crowned

Kier's Joe O’Connell lands top prize. Full list of winners
3 days ago

Hochtief starts pulling down Welsh pylons

Construction starts on National Grid project
2 days ago

Kier wins London life sciences job

Contractor lands innovative landmark lab development at ARC West London
2 days ago

Social housing bidding opens for £1.5bn energy retrofit cash

First upgrades of social housing stock could start from early next year
3 days ago

Construction arm propels Mace to record profit

Revenue expected to top £2bn this year despite project delays
4 days ago

Fire destroys conveyor belt at Silvertown Tunnel site

Forty firefighters battle blaze at huge London site
3 days ago

Plan for £58m Bristol pharma R&D facility approved

Willmott Dixon in line to build the R&D facility at Bristol & Bath Science Park
3 days ago

Bond Street Elizabeth line station to open next month

Final station on delayed line will welcome passengers in October
3 days ago

Sisk fixes price on £227m Quintain flats job

Quintain signs single-largest contract so far at Wembley Park
4 days ago

Green light for St Helens town centre revamp

English Cities Fund to start phase 1 next April
3 days ago

Rising costs tip William Hare to £3.6m loss

Specialist contractor falls into the red despite near 60% revenue rise to £220m
5 days ago

Safety blitz on “aches, pains and strains” on site

1,000 site visits planned in coming months to check how workers are moving heavy or bulky materials
5 days ago

Drones sent flying underground to check sewers

Traditional inspection teams replaced with latest technology
4 days ago

Plan submitted for 470 Preston flats scheme

Stoneygate Central scheme on Dryden Mill site will rise to 16 storeys
4 days ago

Graham starts £124m M25 Junction 28

Work on the 36-month Junction 28 upgrade includes constructing a major two-lane loop road
4 days ago

Keltbray bags brace of energy infrastructure wins

Civils work on huge converter stations worth £30m to specialist
5 days ago

Balfour Beatty sole winner for £4bn Scape civils deals

Contractor reappointed to England, Wales and Northern Ireland and separate Scottish deals
5 days ago

PR expert Baroness Rock to chair Costain

Kate Rock will take up senior board role at the end of the year
5 days ago

Billington profit upgrade after strong first-half

Steelwork contractor says weaker pound will allow it to reignite its old export markets in Europe
5 days ago

Green light for £120m Liverpool “super restaurant”

Historic Pumphouse at Stanley Dock to be transformed
6 days ago

Tolent bags £15m Sunderland skills academy

Work to start later this year on Housing Innovation and Construction Skills Academy
5 days ago

Government launches net zero review

Pro-growth and pro-business review of net zero 2050 target launches
6 days ago

L&G Modular wins 400-home Wolverhampton job

Modular specialist wins 17-acre Canalside South regeneration scheme
6 days ago

£1.2bn A12 upgrade accepted for planning

15-mile Essex road upgrade between Chelmsford and Colchester aims for 2023/24 start
6 days ago

US consultant trumps WSP bid for RPS Group

Tetra Tech swoops but WSP could come back with new offer if bidding war breaks out
6 days ago

Sisk hands staff £900 cost of living cash boost

Firm also promises staff £400 Christmas voucher in November
6 days ago

Loathed IR35 reforms scrapped by Chancellor

Contractors will no longer have to determine tax status of freelance workers
1 week ago

Higgins signs deal for 740 West London homes

Work to start this autumn on two Hayes housing estate rebuilds
6 days ago

Contractor services