TIDMHILS
RNS Number : 8404B
Hill & Smith Holdings PLC
05 October 2022
5 October 2022
Hill & Smith Holdings PLC
Acquisition of National Signal and Widnes Galvanising
Hill & Smith Holdings 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 the business and
assets of National Signal, Inc. ("National Signal") from its
shareholders, the management team, who will be staying with the
business. The initial cash consideration is $25.3m (c.GBP22.2m), on
a debt and cash free basis. Further cash consideration of up to
$4.0m (c.GBP3.5m) is payable, conditional on National Signal's
achievement of financial performance targets in the three years
post-acquisition. The acquisition will be funded from the Group's
existing banking facilities.
National Signal, located in Fullerton, California, and led by
Mark Fernandez, is a designer, manufacturer and supplier of
off-grid solar lighting solutions in the USA. It offers a range of
solar lighting and traffic management products across road and
other infrastructure applications. The business benefits from the
ongoing transition from fossil fuels to a zero-carbon economy, as
well as the need to reduce noise pollution, driven by government
legislation and customer demands. National Signal is highly
complementary to Hill & Smith's 2021 acquisition of Prolectric
Services, a UK market leader in off-grid solar energy solutions,
and will further accelerate our strategy in this exciting and fast
growing market.
In the twelve months to 30 June 2022, National Signal reported
unaudited revenue of $27.3m, adjusted EBITDA of $3.4m and gross
assets(*) of $8.3m. National Signal has delivered significant
revenue and operating profit growth over the last three years. The
acquisition is expected to be modestly earnings enhancing to the
Group in 2022.
The Group is also pleased to announce that it has completed the
acquisition of Widnes Galvanising Limited ("Widnes") for a cash
consideration of GBP3.7m on a debt and cash free basis. The
acquisition of Widnes further expands the geographic footprint of
our UK galvanizing business into the north west of the UK and is
aligned to the Group's growth strategy.
Trading Update
The Group will provide its scheduled trading update on 16
November 2022, however it is pleased to confirm that trading has
remained robust since the half year with current foreign exchange
rates providing potential outperformance.
Alan Giddins, Executive Chair, said:
"National Signal is a high growth temporary solar lighting
business, operating in a market with excellent long term potential.
Following our investment in Prolectric Services, Hill & Smith
has gained significant experience in off-grid solar lighting and
energy solutions, and the acquisition of National Signal will
further accelerate our strategy in this highly attractive
market.
"The acquisition of Widnes Galvanizing is aligned to our UK
galvanizing growth strategy and complements our existing geographic
footprint by enhancing our presence in the north west of the UK. I
am delighted to welcome both National Signal and Widnes Galvanizing
and their employees to the Group."
(*) As at 31 December 2021
ENDS
For further information, please contact:
Hill & Smith Holdings PLC Tel: +44 (0)121 704 7434
Alan Giddins, Executive Chair
Hannah Nichols, Chief Financial Officer
MHP Communications Tel: +44 (0)20 3128 8613
Andrew Jaques
Rachel Farrington
Catherine Chapman
Notes to Editors
Hill & Smith Holdings 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, renewable energy lighting and power
solutions, Intelligent Traffic Solutions, street lighting columns
and bridge parapets. The security portfolio includes hostile
vehicle mitigation solutions, high security fencing and automated
gate solutions.
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