Severfield bosses described Dam Structures as ‘highly complementary’ to their existing business.
Where Severfield is noted for structural steelwork and big beams, particularly in high rise and stadium applications, Dam Structures’ 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, façade retention towers, portal framed structures, mezzanine floors, heavy duty stairs and minor bridges. Its customers include Laing O’Rourke, 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: “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.”
Dam is based near Bridlington – about 50 miles from Severfield’s Thirsk home – 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 £22.3m and made a pre-tax profit of £1.9m. It has net assets of £14.2 million
Severfield is paying an initial £12m to acquire 100% of Dam Structures on a cash free, debt free basis, with up to £7m payable in 2022 and up to £8m more over five years depending on performance.
Dam Structures’ 55 production staff, including chief executive and former owner Phil Cook and managing director Josh Emmerson, will remain with the business.