Value of deal could rise to 拢37m
Severfield is paying up to 拢37m for a Bolton-based steelwork contractor as it eyes growth in nuclear and other power sectors.
Family business Harry Peers, which was set up in 1933 and is headed by the eponymous founder鈥檚 relative, Michael, has carried out structural steel jobs worth more than 拢21m at Sellafield in Cumbria and has worked on other nuclear projects at Trawsfynydd Power Station in north Wales and the Rosyth naval dockyard in Scotland.
Peers made a pre-tax profit of 拢3.4m in th 12 months to April, from a turnover of 拢21m. It employs 63 people.
Severfield is paying 拢18m in cash and a further 拢12m in cash equivalents such as shares. It has also agreed to shell out another 拢7m in late 2020, depending on Peers meeting performance targets by next August.
Alan Dunsmore (pictured), chief executive of Severfield, said: 鈥淗arry Peers鈥� experience in specialist, highly regulated, non-cyclical markets will enhance our future growth plans through expanding the group鈥檚 capabilities and sector reach.鈥�
Severfield, whose current jobs include the Google building in King鈥檚 Cross and which posted a turnover of 拢275m and a pre-tax profit of 拢25m in the year to March, said Peers鈥� existing management would remain.
Severfield has previously said it wants to get underlying pre-tax profit up to 拢26m by next year as part of a strategic target.
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