(Sharecast News) - FTSE 250-listed infrastructure group Hill & Smith is spending £11.4m to buy Ohio-based drainage company United Fiberglass.
The company, which is being taken over from a charitable foundation, makes and supplies composite pipe, conduit, and bridge drain infrastructure systems, serving utility, infrastructure, transportation and industrial markets across the US.
It will be folded into Hill & Smith's Creative Composites Group within Engineered Solutions, and will complement its existing activities in an "exciting and growing market", the UK firm said in a statement on Friday.
It will expand Hill & Smith's customer base and product range, and provide additional manufacturing capabilities and purchasing synergies. It will be earnings enhancing to the group by 2024.
"The acquisition of United Fiberglass is in line with our strategy of acquiring businesses within niche markets with strong long-term growth potential and doing so outside of a formal auction process," said Hill & Smith's executive chair Alan Giddins.
"United Fiberglass is a business we have known for many years and is an excellent fit with our existing, high growth US composites business. I am delighted to welcome United Fiberglass and its employees to the group."
Hill & Smith (HILS)