Dam Structures has worked on several big London station jobs
The country’s biggest steelwork contractor has bought Yorkshire rival Dam Structures to beef up its railway business in a deal worth up to £27m.
Severfield, which is based in North Yorkshire, has paid an initial £12m for the Bridlington-based firm which in its last set of results posted a £22.3m turnover and a pre-tax profit of £1.9m for the year to October 2019.
A further £7m is set to be paid next year with an additional £8m due to be handed over provided the firm hits a series of performance milestones over the next five years.
Dam, which was set up in 2004 and employs 76 people, has worked on several big London station jobs including the ticket hall upgrade at Victoria as well as a new ticket hall at Tottenham Court Road underground station.
Severfield chief executive Alan Dunsmore said: “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.”
The firm added the move will allow it to target more work for Network Rail as well as lucrative electrification packages on HS2.
As well as rail, Dam specialises in early stage demolition and ground works and existing clients include Laing O’Rourke, Mace and concrete specialist Byrne Bros.
Severfield said Dam’s existing chief executive Phil Cook and managing director Josh Emmerson will stay at the business.