Clayton-le-Moors firm bought for £11.6m (From Lancashire Telegraph)

Clayton-le-Moors firm bought for £11.6m

2:09pm Friday 19th March 2010 in

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A MAJOR East Lancashire construction firm was today snapped up by a London-based rival in an £11.6million deal.

D&S Engineering, of Clayton-le-Moors, which builds industrial sites and also carries out surveys, was snapped up by the larger T.Clarke Group after D&S’s founder retired.

But the company’s 150 staff, based at the Junction Seven business park, were immediately reassured by their new top boss.

T.Clarke chief executive Mark Lawrence said: “I think the acquisition of D&S is complementary to our current businesses.

“The important thing for T.Clarke when we buy companies is that they employ local people, and that is the case with D&S.

“We like what we see with the business and we see it growing. There’s no reason to change any of that.”

As well as ruling job cuts, Mr Lawrence also said T.Clarke remained committed to D&S East Lancashire base.

For year ending September 2009, D&S reported pre-tax profits of £500,000 on a turnover of £16.6million, with net assets worth £3.3million.

However, founder Peter Dawson last year decided to offload the company and retire.

Under the terms of the deal, T.Clarke paid £10.6million up front, with a further £1million payable if certain assets and cash targets are met.

T.Clarke bosses said they hoped the deal would boost company profits in 2010.

Mr Lawrence added: “D&S Engineering is a first-class business with an enviable reputation. It has a very good client base of long-standing.

“We believe that there is an excellent opportunity to build the scale of its facilities management operations and roll these out across the UK.”

D&S Engineering directors Ivan Bland, Clive Jackson and Keith Gaylor were unavailable for comment.