Last checked at 17 Nov 2023 07:00
17 November 2023
Hill & Smith PLC
Acquisition of United Fiberglass
Hill & Smith PLC ("Hill & Smith" or "the Group"), the international provider of sustainable infrastructure products and services, today announces the acquisition of United Fiberglass of America Inc ("United Fiberglass").
Acquisition of United Fiberglass
The Group has completed the acquisition of the business and assets of United Fiberglass from a charitable foundation. The management team will be staying with the business. The cash consideration is $14.0m (c.£11.4m), on a debt and cash free basis, and will be funded from the Group's existing banking facilities.
United Fiberglass, located in Springfield, Ohio, is a designer, manufacturer and supplier of composite pipe, conduit, and bridge drain infrastructure systems. Its products, with a combination of high strength, lightweight and resistance to corrosion can be found in a wide range of application environments, above and below ground, including those serving utility, infrastructure, transportation and industrial markets across the US.
United Fiberglass will become part of Hill & Smith's composites business, Creative Composites Group, within our Engineered Solutions division. The business is highly complementary to our existing composite activities and will further accelerate our strategy in this exciting and growing market, expanding our customer base and product range, while also providing additional manufacturing capability and purchasing synergies.
In the 12 months to 30 September 2023, United reported unaudited revenue of $9.9m, adjusted EBIT of $1.8m and gross assets* of $7.2m. The acquisition is expected to be earnings enhancing to the Group in 2024.
*As at 30 September 2023
Alan Giddins, Executive Chair, said:
"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. 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."
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.4,250 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.