Severfield plc, the Thirsk, North Yorkshire-based steel group, said it agreed to acquire Voortman Steel Construction Holding B.V. (VSCH) of Rijssen in the Netherlands for €24 million.
Severfield said the acquisition of VSCH will provide it with a manufacturing base in Europe to complement its existing European business.
The Thirsk firm said the deal will provide 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 (turnkey) solutions for simpler structures.”
Severfield CEO Alan Dunsmore 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.”