Structural steel group Severfield has entered into an agreement to acquire an innovative European steel construction business for €24m.
Voortman Steel Construction Holding (VSCH) is headquartered in Rijssen, the Netherlands, and will provide Severfield with a manufacturing base in Europe to complement its existing European business.
The deal provides Thirsk-headquartered Severfield with greater access to a growing European market and will open up attractive opportunities including access to the high growth electricity distribution sector and capabilities in design and build services for simpler structures.
VSCH was said to be renowned in the Netherlands for its in-house knowledge, innovation and expertise. The business is well invested with modern and highly efficient production facilities, generating output of about15,000 tonnes per annum, and is co-located with Voortman Steel Machinery Holding, a manufacturer of steel fabrication machinery.
Alan Dunsmore, chief executive at Severfield, said:
Severfield has been growing and developing its European presence over recent years and the acquisition of VSCH will help the Group continue to deliver on its growth strategy. VSCH is highly regarded in the Netherlands delivering a quality service to its large European customer base and has been growing its capabilities in the high growth electricity distribution sector and through new design and build (turnkey) solutions.
We believe that the combination of Severfield and VSCH will result in a broadening of our service offering and an ability to grow in different sectors and geographies. Not only is the acquisition of VSCH anticipated to be earnings enhancing in its first full year of ownership, the transaction will further cement our position in a growing European market and provide opportunities for further profitable growth.
We look forward to working with the VSCH management on building new business opportunities together and driving future growth from within the combined group.”