Harry Peers recently installed a new pipe rack on the Greatham boiler replacement programme
Severfield has acquired nuclear and power generation structural steelwork business Harry Peers & Co for £18m.
Severfield said the deal would extend its capabilities in the “attractive complementary” market sectors of nuclear, process industries and power generation.
The UK government is forecasted to require a decommissioning budget of £164bn in the nuclear sector over the next 120 years. Meanwhile, the power generation market, including energy-from-waste (“EfW”) plants, is forecast to grow on the back of the world economy seeking alternatives to carbon fuels.
Harry Peers also has capability in modular structural steel offerings, which Severfield said it would look to develop across its wider product range.
Harry Peers had revenue of £21.2m for the year to 30 April 2019, making a pre-tax profit of £3.4m. Severfield’s acquisition will be funded by a combination of cash reserves and a loan. The purchase price could increase by up to £7m, payable in late 2020, if certain performance-based targets are met.
Alan Dunsmore, chief executive of Severfield 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.”
