Acquisition

1 Nov 2006 07:30

Hill & Smith Hldgs PLC01 November 2006 Acquisition of Metnor Galvanizing Hill & Smith Holdings PLC ('Hill & Smith' or the 'Company') announces that it has completed the purchase from Metnor Group PLC ("Metnor Group") of the issuedshare capital of Metnor Galvanizing Limited ("Metnor Galvanizing") for a cash consideration of £6.53 million. The consideration is subject to adjustment on finalisation of completion accounts. Hill & Smith has also purchased from Moortime Limited, a subsidiary of Metnor Group, for a cash consideration of £3.2 million, the freehold property which is occupied by Metnor Galvanizing. Metnor Galvanizing, which operates from a site in Chesterfield, provides galvanizing and related services to the construction industry. In the year ended 31 December 2005, Metnor Galvanizing made an operating profit,before group management charges and restructuring costs, of £0.5 million. At 31 December 2005, the book value of the gross assets being acquired, including the freehold property, amounted to £5.2 million. All the existing employees and members of the management team are remaining with Metnor Galvanizing following the acquisition. The Directors of Hill & Smith believe that the acquisition will complement Hill & Smith's existing galvanizing capacity, and that there will be significantsynergies with Hill & Smith's other businesses. David Grove, Hill & Smith's chief executive, commented: "This acquisition of Metnor Galvanizing is a further demonstration of our commitment to investing in the Group's core businesses. We are confident that it will be an excellent fit with Hill & Smith." Further information:David Grove, Chief ExecutiveHill & Smith Holdings PLCTel: 0121 704 7430 Edward Carter or Anna McNeilFreshwater PR and MarketingTel: 0121 633 7775 End This information is provided by RNS The company news service from the London Stock Exchange