Engineering contractor Motherwell Bridge has been sold to industrial services group Cape in a deal that values the firm at up to £37.65 million.
Cape is paying £34m in cash for the Lanarkshire-based company, which employs about 300 people and generated underlying pre-tax profits of £4.8m in 2012, on revenues of £34.6m.
A further £1.25m will be paid if a “key contract” is secured, with an additional £1.5m due depending on future performance. Cape will also take on £900,000 of debt.
Motherwell Bridge is a manufacturer of specialist storage tanks and provides and maintains gasholders for the global steel sector. It also maintains and refurbishes heat exchangers for the North Sea oil and gas industry.
Cape chief executive Joe Oatley said: “Motherwell Bridge has tremendous expertise, reputation and brand recognition in the oil and gas storage tank market, including a market-leading position in the UK and we expect to accelerate Motherwell Bridge overseas growth through Cape’s international footprint.
“By combining the strengths of Cape and Motherwell Bridge we are uniquely able to provide a complete tank maintenance solution to clients in the oil and gas market.”