26th Feb 2021 14:06
Severfield PLC - North Yorkshire-based structural steel in UK and India - Enters agreement to acquire steel fabrication company DAM Structures Ltd for a net initial cash consideration of GBP12.0 million, including cash and cash equivalents of GBP5.0 million. Notes a further deferred consideration of GBP7.0 million is payable in 2022, along with a performance-based consideration of up to GBP8.0 million payable over five years. Says the acquisition will be funded by a combination of cash reserves and a term loan. Adds the acquisition is anticipated to be earnings enhancing in its first full year of operation.
'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," says Chief Executive Alan Dunsmore.
Current stock price: 76.80 pence, up 6.7% on Friday
Year-to-date change: up 10%
By Zoe Wickens; [email protected]
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