German giant swoops for mining businesses
YORKSHIRE structural steel and engineering group Billington Holdings has sold two businesses involved in the mining industry to a German group for £1.8m.
SMT Scharf, a world leader for rail-bound railway systems for the mining sector, has bought Dosco Holdings from Billington.
Dosco Holdings comprises two principal businesses, Dosco Overseas Engineering and Hollybank Engineering, both based in Nottinghamshire.
Dosco Overseas Engineering is involved in the manufacture and supply of underground mining machines to the international mining industry and civil engineering industries worldwide.
Hollybank Engineering supplies underground support arches principally for the UK mining industry.
Following the deal, Wombwell based Billington Holdings will comprise Billington Structures, one of the leading structural steel contractors in the UK, and Newark-based company, easi-edge, a specialist in the development, production and rental or sale of edge protection systems and other safety-related products.
With a history dating back to 1970, Billington Holdings was formed in June 2008 following the disposal of non-core assets and change of name from Amco Corporation and prior to the deal had been made up of three divisions: structural steel, which designs, manufactures and erects structural steelwork for commercial and public sector buildings and supplies customers including Balfour Beatty and Bovis; safety solutions which sells and rents protection and safety products to the construction industry, and Dosco Overseas Engineering.
Billington said the disposals were non-core to its operations.
In the six months to June 30 2009, Billington Holdings saw pre-tax profit increase by 9.3% to £2.53m and turnover up 5.3% to £37.4m.
A team from law firm Hammonds in Birmingham advised SMT Scharf AG on the acquisition of Dosco Holdings.
The Hammonds team was led by corporate partner Christian Lowis, assisted by corporate associate Ryan Hawley, pensions associate Kate Lloyd, tax partner Jon Stevens, property partner Mitchell Ball and property solicitor Shazan Miah.
Mr Lowis said: “We are delighted to have completed our first deal for SMT Scharf, a deal which will allow Dosco and Hollybank to flourish as part of a larger group with an established, market leading reputation in the mining and tunnelling industry.”
Steve Fareham, chief executive of Billington Holdings, said: “We are delighted to have come to an agreement with SMT Scharf for the disposal of Dosco and Hollybank.
“The acquisition complements SMT Scharf’s core business of rail-bound railways in terms of both customers and technologies and allows us to focus on our core business of structural steel whilst eliminating potential liabilities attributable to the Dosco pension scheme.”
