UK-based steelwork fabricator Severfield is set to acquire the Netherlands-based constructional steelwork contractor Voortman Steel Construction Holdings (VSCH) for €24m.
The deal will not only enable Severfield to speed up its European growth strategy but also diversify its end markets.
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VSCH, a £65m turnover business with its headquarters in Rijssen, has over 250 employees. In 2022, the firm reported a pre-tax profit of £1m.
“Voortman is renowned in the Netherlands for its in-house knowledge, innovation and expertise,” stated Severfield on its website.
“We look forward to working with the Voortman team on building new business opportunities together and driving future growth,” it further added.
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Voortman has modern manufacturing facilities. It manufactures approximately 15,000t of structural steelwork annually, reported The Construction Index.
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By GlobalDataSeverfield CEO Alan Dunsmore was quoted by the publication as saying: “Severfield has been growing and developing its European presence over recent years and the acquisition of VSCH will help the group continue to deliver on its growth strategy. VSCH is highly regarded in the Netherlands delivering a quality service to its large European customer base and has been growing its capabilities in the high-growth electricity distribution sector through new design and build solutions.
“We believe that the combination of Severfield and VSCH will result in a broadening of our service offering and ability to grow in different sectors and geographies. Not only is the acquisition of VSCH anticipated to be earnings-enhancing in its first full year of ownership, but the transaction will also further cement our position in a growing European market and provide opportunities for further profitable growth.”
VSCH is co-located with steel fabrication machinery manufacturer Voortman Steel Machinery Holding (VSMH).
This acquisition will enable future collaboration with VSMH in areas such as the development of robot manufacturing technologies and fabrication software.
The acquisition is anticipated to complete in early April.
