12 March 2024
Hill & Smith PLC
Acquisition of FM
Stainless
Hill & Smith PLC ("Hill & Smith" or "the
Group"), the international provider of sustainable infrastructure
products and services, today announces the acquisition of FM
Stainless, LLC ("FM Stainless").
Acquisition of
FM Stainless
The Group has completed the acquisition of the
business and assets of FM Stainless from its principal
shareholder, Chad Hood, who will be staying with the business. The
initial cash consideration is $8.25m (c.£6.6m), on a debt and cash
free basis. Further cash consideration of up to $0.5m (c.£0.4m) is
payable, conditional on achievement of financial performance
targets in the year following acquisition.
FM Stainless, located in Ellijay, Georgia,
manufactures stainless steel pipe supports, expansion
anchors and fasteners principally for water and waste water,
attractive end markets with strong growth prospects underpinned by
significant multi-year investment in water infrastructure. FM
Stainless sells its products across the US, with particular focus
within the southeast region, a geography which has seen favourable
demographic movements.
FM Stainless will become part of The Paterson
Group, within our Engineered Solutions division and will expand our
geographical customer base, generate cross selling opportunities
and provide additional manufacturing capacity and
capability.
In the 12 months to 31 December 2023, FM
Stainless reported unaudited revenue of $8.6m, adjusted EBIT of
$1.6m and gross assets as at 31st December 2023 of
$5.5m.
The acquisition will be funded from
the Group's existing borrowing facilities and is expected to be
earnings enhancing to the Group in 2024.
Alan Giddins, Executive Chair, said:
"The acquisition of FM Stainless will expand our
geographical customer base, increase our manufacturing capability
and generate material cross selling opportunities in an attractive
growth market. I am delighted to welcome FM Stainless and its
employees to the Group."
For further information, please
contact:
Hill & Smith PLC
Alan Giddins, Executive Chair
Tel: +44 (0)121 704
7434
Hannah Nichols, Chief Financial
Officer
MHP
Reg Hoare/Rachel Farrington/Catherine
Chapman
Tel: +44 (0)7801
894577
Email: hillandsmith@mhpgroup.com
Notes to
Editors
Hill & Smith PLC is a leading provider of sustainable
infrastructure products and services. The Group employs c.4,400
people worldwide with the majority employed by its autonomous,
agile, customer focussed operating businesses based in the US, UK,
Australia and India. The Group head office is in the UK and
Hill & Smith PLC is quoted on the London Stock Exchange (LSE:
HILS.L).
The Group's operating businesses are organised into three main
business divisions:
Galvanizing Services: increasing the sustainability and
maintenance free life of steel products including structural steel
work, lighting, bridges and other products for industrial and
infrastructure markets.
Engineered Solutions: supplying engineered steel and composite
solutions for a wide range of infrastructure markets including
power generation and distribution, marine, rail and housing.
The division also supplies engineered pipe supports for the water,
power and liquid natural gas markets and seismic protection
solutions.
Roads & Security: supplying products and services to
support road and highway infrastructure including temporary and
permanent road safety barriers, intelligent traffic solutions,
street lighting columns and bridge parapets. In addition, the
division includes two businesses which are market leaders in the
provision of off-grid solar lighting and power solutions. The
security portfolio includes hostile vehicle mitigation solutions,
high security fencing and automated gate
solutions.