Business
Acquisition
Acquisition.
About this update from Severfield Plc
[{"type":"text","content":"\n \n \n 15 March 2023\n \n \n \n Severfield plc\n \n \n \n ('Severfield' or the 'Group')\n \n \n \n \n \n \n €24m acquisition of Voortman Steel Construction Holding B.V., an innovative, market-leading European steel fabrication company, to accelerate Severfield's European growth strategy\n \n \n \n \n \n \n \n \n Severfield plc, the market-leading structural steel group, is pleased to announce that it has entered into an agreement to acquire 100% of the share capital of Voortman Steel Construction Holding B.V. ('VSCH'), an innovative European steel construction group, for a net consideration of €24m payable in cash on completion (the 'Acquisition').\n \n \n \n \n \n Highlights\n \n \n §\n The acquisition of VSCH, a profitable, cash generative business headquartered in Rijssen, the Netherlands, will provide Severfield with a manufacturing base in Europe to complement its existing European business.\n \n \n §\n The Acquisition will provide Severfield with:\n \n \n §\n 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. Combining the businesses will enhance Severfield's position as one of Europe's most diverse structural steel services groups.\n \n \n §\n growth opportunities through access to new European clients, particularly in the industrial, commercial and residential sectors, and a platform to offer a wider range of services to its existing clients.\n \n \n §\n For the twelve months to 31 December 2021, VSCH recorded unaudited consolidated revenues of €73.5m and a normalised\n (note 2)\n EBITDA of €4.5m. The business has achieved a normalised\n (note 2)\n EBITDA of between €4.5m and €5.5m over the past four years.\n \n \n §\n The Acquisition consideration will be funded by a combination of a new amortising term loan (c.€21m) and cash reserves (c.€3m).\n \n \n §\n The Acquisition is anticipated to be earnings enhancing in the year-ending 31 March 2024.\n \n \n \n \n \n \n Strategic rationale for the Acquisition\n \n \n \n The Board of Severfield believes that VSCH is an attractive acquisition opportunity. It is profitable, cash generative and provides a manufacturing base in Europe, allowing Severfield to benefit from VSCH...