Dundee-based PressureFab, founded by German Hermann Twickler, has acquired RT Metal Services, a stainless steel manufacturer based in Arbroath, on the retirement of its managing director Tom Smith.
PressureFab is a steel fabricator, designing and making specialist certified offshore equipment, including tanks, filtration systems, and modular systems, and offers Scotland's only home-produced containerised equipment.
Mr Twickler, winner of last year's keenly-contested Emerging Entrepreneur of the Year award from the Entrepreneurial Exchange, said: "We are confident that this will open up opportunities with new and current customers for the manufacture of piping and vessels out of stainless steel, duplex, and inconel materials."
He added: "We also are pleased to secure the 12 existing jobs, and plan to merge these highly skilled and productive employees with our own stainless steel division and move it into a better suited state-of-the-art facility."
Mr Smith said: "I believe that the company and staff will be in good hands with Hermann, and am also very excited at the prospect of him bringing the same type of rapid growth to RT that he has brought to PressureFab."
Founded three years ago, PressureFab last year doubled turnover to £5.7m, and Companies House accounts suggest a net profit of some £512,000.
Mr Twickler said turnover was on track to top £10m, adding: "We look forward to further acquisitions of complementary businesses."