Hill & Smith Regulatory News (HILS)

20 February 2023

Hill & Smith PLC

Acquisition of Enduro Composites

Highly complementary US acquisition in the exciting and growing composites market

Hill & Smith PLC ("Hill & Smith" or "the Group"), the international group creating sustainable infrastructure and safe transport through innovation, today announces that it has completed the acquisition of Enduro Composites, Inc. ("Enduro"). The sellers are a group of private shareholders, including the management team, who had a small minority shareholding in Enduro, and will be staying with the business. The cash consideration for the acquisition is $35.0m (c.£28.7m), on a debt and cash free basis, and will be funded from the Group's existing banking facilities.

Enduro, located in Houston, Texas, is a designer, manufacturer and supplier of engineered composite solutions focused on industrial and infrastructure market segments. Its products can be used in a wide variety of applications in conditions that require high strength, light weight and resistance to corrosion.

Enduro will become part of the Group's Engineered Solutions division, is highly complementary to our existing northeastern and midwestern US composite businesses and will further accelerate our strategy in this exciting and growing market. The acquisition will expand our customer base and product range, add an extensive manufacturing facility in the key Gulf Coast region and provide the opportunity for manufacturing process enhancements.

In the 12 months to 31 December 2022, Enduro reported unaudited adjusted revenue of $47.0m, adjusted EBIT of $4.5m and gross assets* of $22.9m. The acquisition is expected to be earnings enhancing to the Group in 2023.

Following completion of the transaction, the Group's leverage will increase to c. 0.9 times, providing further capacity to continue with our expansion plans.

Alan Giddins, Executive Chair, said:

"The acquisition of Enduro is in line with our strategy to undertake disciplined M&A that is aligned to our focus on niche markets with excellent long term growth potential. The acquisition of Enduro will further develop our product offering and expand our geographical coverage in the highly attractive composites market. I am delighted to welcome Enduro and its employees to the Group."

*As at 31 December 2022

 ENDS

For further information, please contact:

Hill & Smith PLC Tel: +44 (0)121 704 7434

Alan Giddins, Executive Chair

Hannah Nichols, Chief Financial Officer

MHP Tel: +44 (0)20 3128 8613

Reg Hoare

Rachel Farrington

Catherine Chapman

Notes to Editors

Hill & Smith PLC creates sustainable infrastructure and safe transport through innovation. The Group employs c.3,800 people worldwide with the majority employed by its autonomous, agile, customer focussed operating businesses based in the UK, USA, Australia, India and Sweden. The Group office is in the UK and it is quoted on the London Stock Exchange (LSE: HILS.L).

The Group's operating businesses are organised into three main business divisions:

Galvanizing Services: dramatically increasing the sustainability and maintenance free life of steel products including structural steel work, lighting, bridges, agricultural and other products for the industrial and infrastructure markets.

Engineered Solutions: supplying engineered steel and composite solutions with low embodied energy for a wide range of infrastructure markets including energy 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.