Severfield PLC (LSE:SFR) said it has bought Voortman Steel Construction (VSCH), a European steel construction group, for €24mln.
The cash deal will provide Severfield with a manufacturing base in Europe to complement its existing European business and greater access to a growing European market, the structural steel firm said.
The company said the deal is anticipated to be earnings-enhancing in the year ending 31 March 2024.
VSCH is being bought on a debt-free basis with the total consideration of €29.5mln including €5.5mln of cash and cash equivalents.
The deal will be funded by a combination of cash reserves (around €8.5mln) and a new term loan (around €21mln), repayable over a five-year period.
Shares in Severfield rose 0.2% to 61p in London on Wednesday morning.