Howco Industries plc, the global supplier to the oil & gas sector, has acquired Sheffield-based Henry Whitham & Son Ltd and sector specialists Carbon & Alloy Metals Inc of the US in a £11m deal.

The deal is expected to see Howco Industries annual turnover rise by 40 percent to over £100m, boosting workforce numbers to more than 500 people.

Malcolm Howat, chairman and chief executive officer of Howco Industries plc, said: “These businesses enhance our existing global position and add two world-class specialist steel companies to our portfolio of services”

The deal has been funded by equity and debt finance provided by 3i plc and Bank of Scotland Structured Finance Glasgow, the company’s long term backers.

Mr Howat said: “Last year, we set the goal of strengthening the group’s position in the UK and US. This expansion underpins our overall strategy and will enable us to accelerate growth and take full advantage of the current demand within the oil and gas sector”

Henry Whitham Ltd and Carbon & Alloy Inc are well-established in the special steels processing and distribution business. Both have built up a reputation for quality through their experienced workforces over the past 25 years.

Sheffield-based Henry Whitham is an internationally-renowned heat treatment and testing specialist, employing 180 people. Its Rotherham operation boasts one of the best-equipped heavy engineering machine shops in Europe.

Texas-based Carbon & Alloy Inc, which employs 50 staff, will bolster Howco’s existing US business, complementing the group’s recently developed 400,000sq. ft. manufacturing facility in Houston, strengthening existing product lines and introducing new ones.

Howco Industries operates globally through subsidiaries in the US, Canada, Singapore and Europe as well as the UK. In the past, the group, which lists most of the major oil equipment manufacturers as customers has mainly focused on a strategy of organic growth.

These core activities will strengthen the group’s ability to service customers worldwide and support Howco Industries position as a major force in global supply chain management.