New acquisition will push Pugh’s turnover to £20m

Apr 15 2008 by Chris Knox, The Journal

A DEMOLITION company is hoping to expand after buying a Newcastle construction company as part of its acquisition strategy.

Cramlington-based Owen Pugh has bought Graydon Dawson for an undisclosed sum and hopes to increase the Newcastle firm’s £4m turnover and add to its 50-strong workforce in the coming years. Graydon Dawson, which specialises in trench laying and has major contracts with a number of utility companies including Northumbrian Water, will remain at its site in Blaydon as part of the deal.

The purchase brings Owen Pugh’s turnover to £20m and its workforce up to 240, with the firm looking to extend this further through other planned acquisitions.

John Dickson, executive chairman at Owen Pugh, said: “We were looking for an opportunity to acquire a sub-contractor in the groundworks sector and Graydon Dawson is an ideal fit. There are a number of other targets that we are actively looking at now, but we will make sure we consolidate before we move forward.”

Founded in 1946, Owen Pugh specialises in plant and equipment hire as well as demolition and land reclamation and has been busy on a number of projects in the North East over recent months, including the planned demolition of 400 houses in run-down areas of Gateshead.

Mr Dickson said: “There are lots of synergies between what Graydon Dawson does and what we do and we are very positive and enthusiastic about how the Owen Pugh Group can now continue its growth.”

The deal was completed with the help of Newcastle-based Muckle LLP and was the law firm’s 100th deal in the last 12 months.

PAGE TWO: A look at other deals in the run-up to the CGT changes.