(Sharecast News) - Infrastructure services group Hill & Smith said it had bought the business and assets of New Jersey-based Capital Steel for $6.25m (£5m), on a debt and cash free basis.
Capital Steel, located in Trenton, is led by Robert Hickman who will stay with the company. It supplies structural steel products and services principally into the electrical transmission and distribution market in New York, New Jersey and Pennsylvania.
Under the terms of the deal a further $1.2m is payable conditional on Capital Steel's achievement of financial performance targets in the two years post-acquisition.
The acquisition will be funded from the Hill & Smith's existing banking facilities.
"Capital Steel will become part of V&S Schuler Utilities Group, within our Engineered Solutions division. The business is highly complementary to our existing activities and will further accelerate our strategy in this high growth market," Hill & Smith said on Tuesday.
"The acquisition will expand our geographical customer base, generate material cross selling opportunities and provide additional manufacturing capacity and capability."
Reporting by Frank Prenesti for Sharecast.com
Hill & Smith (HILS)