REG - Hill & Smith PLC - Acquisition of FM Stainless

Hill & SmithAnnouncement

12/03/2024 07:15

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RNS Number : 4225G  Hill & Smith PLC  12 March 2024

12 March 2024

Hill & Smith PLC

Acquisition of FM Stainless

Hill & Smith PLC ("Hill & Smith" or "the Group"), the international
provider of sustainable infrastructure products and services, today announces
the acquisition of FM Stainless, LLC ("FM Stainless").

Acquisition of FM Stainless

The Group has completed the acquisition of the business and assets of FM
Stainless from its principal shareholder, Chad Hood, who will be staying with
the business. The initial cash consideration is $8.25m (c.£6.6m), on a debt
and cash free basis. Further cash consideration of up to $0.5m (c.£0.4m) is
payable, conditional on achievement of financial performance targets in the
year following acquisition.

FM Stainless, located in Ellijay, Georgia, manufactures stainless steel pipe
supports, expansion anchors and fasteners principally for water and waste
water, attractive end markets with strong growth prospects underpinned by
significant multi-year investment in water infrastructure. FM Stainless sells
its products across the US, with particular focus within the southeast region,
a geography which has seen favourable demographic movements.

FM Stainless will become part of The Paterson Group, within our Engineered
Solutions division and will expand our geographical customer base, generate
cross selling opportunities and provide additional manufacturing capacity and
capability.

In the 12 months to 31 December 2023, FM Stainless reported unaudited revenue
of $8.6m, adjusted EBIT of $1.6m and gross assets as at 31st December 2023 of
$5.5m.

The acquisition will be funded from the Group's existing borrowing facilities
and is expected to be earnings enhancing to the Group in 2024.

Alan Giddins, Executive Chair, said:

"The acquisition of FM Stainless will expand our geographical customer base,
increase our manufacturing capability and generate material cross selling
opportunities in an attractive growth market. I am delighted to welcome FM
Stainless and its employees to the Group."

 

For further information, please contact:

Hill & Smith PLC

Alan Giddins, Executive Chair
                                  Tel:  +44 (0)121 704 7434

Hannah Nichols, Chief Financial Officer

MHP

 

Reg Hoare/Rachel Farrington/Catherine Chapman
         Tel:  +44 (0)7801 894577

 
Email: hillandsmith@mhpgroup.com (mailto:hillandsmith@mhpgroup.com)

 

Notes to Editors

Hill & Smith PLC is a leading provider of sustainable infrastructure
products and services. The Group employs c.4,400 people worldwide with the
majority employed by its autonomous, agile, customer focussed operating
businesses based in the US, UK, Australia and India.  The Group head office
is in the UK and Hill & Smith PLC is quoted on the London Stock Exchange
(LSE: HILS.L).

The Group's operating businesses are organised into three main business
divisions:

 

Galvanizing Services: increasing the sustainability and maintenance free life
of steel products including structural steel work, lighting, bridges and other
products for industrial and infrastructure markets.

Engineered Solutions: supplying engineered steel and composite solutions for a
wide range of infrastructure markets including power 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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