DAM Structures, the Yorkshire-based steel fabrication company, has been purchased by Severfield, the UK’s market leader in the design, fabrication and construction of structural steel.
Based in Carnaby, just south of Bridlington in East Yorkshire, DAM Structures has 76 employees and can process up to 300 tonnes of structural steelwork per week for distribution across the UK. It specialises in temporary and permanent works, ranging from plunge columns to 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.
DAM Structures is actively supplying piling and structures for Network Rail’s electrification programme, and this is seen as a growth area.
Severfield operates from five sites, employs around 1,400 people and has a capacity of 150,000 tonnes of steel per annum. In rail, it has a name for manufacturing large steel bridges, such as the one installed on the Ordsall chord in Manchester a few years ago.
To acquire DAM Structures, Severfield is making an initial payment of £17 million, consisting of £12 million cash and £5 million cash equivalent. It will make a further payment of £7 million in April 2022 unless certain performance criteria have not been achieved, in which case the deferred consideration payment shall be reduced to £5 million.
Commenting on the acquisition, Alan Dunsmore, chief executive officer of Severfield, 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.
“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.”