REG - Hill & Smith Hldgs. - Acquisition: National Signal & Widnes Galvanising

Hill & SmithAnnouncement

05/10/2022 09:33

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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.£22.2m), on a debt and cash free
basis. Further cash consideration of up to $4.0m (c.£3.5m) 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 £3.7m 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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