Severfield has agreed to acquire in full Harry Peers & Co Limited, a structural steelwork business within the nuclear, process industries and power generation sectors. The net initial consideration is £18 million ($22m), which could increase by £7m depending on performance.
Severfield says the acquisition will extend its current capabilities into attractive complementary market sectors: nuclear, process industries and power generation. “Combining the businesses will enhance Severfield’s position as the UK’s broadest structural steel services group,” the firm says in a note seen by Kallanish.
For the 12 months ended 30 April 2019 Harry Peers & Co achieved audited revenues of £21.2m and profit before tax of £3.4m. The value of the gross assets as at 30 April 2019 was £24m.
“With the scale and capabilities of the Group, there are substantial opportunities to grow Harry Peers through a number of combined operational initiatives such as new business development functions for Harry Peers, European contract opportunities, and investment in technology-driven enhancements,” Severfield comments.
“Harry Peers has also demonstrated capability in modular structural steel offerings, which Severfield will look to develop across its wider product range,” it adds.
The nuclear sector is forecasted to grow through the UK government’s decommissioning investment programme, which will require a budget of £164 billion over the next 120 years. The power generation market, including energy-from-waste (“EfW”) plants, which contribute 5.57TWh of electricity per annum, is forecast to grow on the back of the world economy seeking alternatives to carbon fuels. The UK government has set a target of 15% of final energy consumption from renewable sources by 2020.
