Thirsk, North Yorkshire-based steel group Severfield plc said on Wednesday it agreed to acquire Bolton-based Harry Peers & Co for a net initial consideration of £18 million.

A performance-based deferred consideration has been put in place which could increase the purchase price by up to £7 million.

Severfield, which employs 1,300, is known for high-profile projects like the new stadium for Tottenham Hotspur FC, the retractable roof for Wimbledon No.1 Court and a new commercial tower at 22 Bishopsgate in London’s financial district.

But Severfield said the acquisition will expand its current capabilities into “attractive complementary market sectors” including nuclear, process industries and power generation.

For the 12 months ended April 30, 2019, Harry Peers achieved audited revenues of £21.2 million and profit before tax of £3.4 million.

“The nuclear sector, including both the defence and commercial sectors, in which Harry Peers commands a niche, well-established and trusted position with blue chip customers, is forecasted to grow through the UK Government’s decommissioning investment programme,” said Severfield.

“The UK Government is forecasted to require a decommissioning budget of £164 billion over the next 120 years …”

Severfield CEO Alan Dunsmore said: “This acquisition will help Severfield continue to deliver on its strategic objectives.

“Harry Peers’s experience in specialist, highly regulated, non-cyclical markets will enhance our future growth plans through expanding the group’s capabilities and sector reach. 

“We believe Severfield is best placed to help Harry Peers continue its profitable growth trajectory, through increased scale and investment and together with Harry Peers’s strong management team we have a real opportunity to develop a broader position within the UK structural steel services market.”