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Severfield acquires nuclear steelwork firm

Severfield has acquired structural steelwork business Harry Peers for £18m to expand its business within nuclear and power generation market sectors.

The cost of the acquisition could increase to £25m if business is performing well by late 2020.

A statement by Severfield’s board said the investment will “enhance its areas of expertise and broaden its market exposure”.

Severfield CEO Alan Dunsmore said: “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.

According to Severfield, the nuclear defence and commercial sectors Harry Peers trades in are forecast to grow through the government’s decommissioning investment programme, which is expected to have a budget of £164 bn over the next 120 years.

The purchase follows the appointment of ex-Laing O’Rourke director Louise Hardy as Severfield’s new non-executive director in August, when Severfield non-executive chairman John Dodds said the company planned to “continue to build on the considerable positive momentum” in the business.

Harry Peers’s recent projects include the £6m structural steelwork on the Teesside Energy from Waste plant, and the £10m steelwork and cladding at the Evaporator D nuclear project at Sellafield.

In the year ended 30 April 2019, Harry Peers recorded a turnover of £21.2m, down from £26.5m the previous year.

Its pre-tax profit has increased by £137,000 to £3.1m, up from £3m in 2018.

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