Engineering group Hill & Smith (LON:HILS) is paying US$45 million (£27.8 million) for US-based pipe support and hanger manufacturer, The Paterson Group Inc. The move will create a major international player in the market for pipe supports with an established presence in North America and the highly regulated nuclear power market. Hill & Smith said it estimated that there were 189 nuclear plants, either under construction or planned worldwide, and the deal was therefore an opportunity for it to grow in a highly attractive market. The Hill & smith share price rose by 4.2% to 290p.

Established in 1908, TPG is a family owned manufacturer and distributor of pipe supports and hangers to the power generation, commercial and industrial markets in North America. The business operates from three fabrication units located on the east coast of America, one in Canada and four sales and distribution depots across America. Through its Bergen-Power pipe supports operation, TPG is one of only three full line pipe supports suppliers with certification for the US nuclear market and has supplied to almost half of all US nuclear power plants built to date. Its long established presence in this growing market, through its ASME (American Society of Mechanical Engineers) nuclear certification, will mean that the group can tender for significant forthcoming nuclear projects in other markets such as China and India.

Hill & Smith said the combination of TPG's business based in North America together with its own engineered pipe supports businesses in the UK, Thailand, China and India would create a global leading supplier. The acquisition also represents a significant increase in Hill & Smith’s presence in the US, where applications for the combined group's pipe support business include the nuclear, gas and coal powered electricity generation industries, as well as water and waste treatment plants, oil refineries, pharmaceuticals and chemical plants. In addition, the company said it expected the combined business to secure material cost synergies over time through the outsourcing of some of TPG’s commercial pipe supports production and through enhanced purchasing arrangements.

Derek Muir, the chief executive of Hill & Smith, said: “By acquiring TPG, we are taking a significant strategic step forward in creating one of the world's leading pipe supports businesses. As well as making us a significant player in the North American market, TPG gives us an…

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