REG - Hill & Smith PLC - Acquisition of Enduro Composites

Hill & SmithAnnouncement

20/02/2023 07:00

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RNS Number : 3582Q  Hill & Smith PLC  20 February 2023

20 February 2023

Hill & Smith PLC

 

Acquisition of Enduro Composites

Highly complementary US acquisition in the exciting and growing composites
market

Hill & Smith 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 Enduro
Composites, Inc. ("Enduro"). The sellers are a group of private shareholders,
including the management team, who had a small minority shareholding in
Enduro, and will be staying with the business. The cash consideration for the
acquisition is $35.0m (c.£28.7m), on a debt and cash free basis, and will be
funded from the Group's existing banking facilities.

Enduro, located in Houston, Texas, is a designer, manufacturer and supplier of
engineered composite solutions focused on industrial and infrastructure market
segments. Its products can be used in a wide variety of applications in
conditions that require high strength, light weight and resistance to
corrosion.

Enduro will become part of the Group's Engineered Solutions division, is
highly complementary to our existing northeastern and midwestern US composite
businesses and will further accelerate our strategy in this exciting and
growing market. The acquisition will expand our customer base and product
range, add an extensive manufacturing facility in the key Gulf Coast region
and provide the opportunity for manufacturing process enhancements.

In the 12 months to 31 December 2022, Enduro reported unaudited adjusted
revenue of $47.0m, adjusted EBIT of $4.5m and gross assets(*) of $22.9m. The
acquisition is expected to be earnings enhancing to the Group in 2023.

Following completion of the transaction, the Group's leverage will increase to
c. 0.9 times, providing further capacity to continue with our expansion plans.

Alan Giddins, Executive Chair, said:

"The acquisition of Enduro is in line with our strategy to undertake
disciplined M&A that is aligned to our focus on niche markets with
excellent long term growth potential. The acquisition of Enduro will further
develop our product offering and expand our geographical coverage in the
highly attractive composites market. I am delighted to welcome Enduro and its
employees to the Group."

(*)As at 31 December 2022

 ENDS

For further information, please contact:

Hill & Smith PLC                                                                                   Tel:  +44 (0)121 704 7434

Alan Giddins, Executive
Chair
 

Hannah Nichols, Chief Financial Officer

MHP                                                                                                       Tel:  +44 (0)20 3128 8613

Reg Hoare

Rachel Farrington

Catherine Chapman

 
 

 

Notes to Editors

Hill & Smith 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,
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.

 

 

 

 

 

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