REG - Hill & Smith PLC - Acquisition of Korns Galvanizing

Hill & SmithAnnouncement

08/03/2023 07:15

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RNS Number : 2160S  Hill & Smith PLC  08 March 2023

8 March 2023

 

Hill & Smith PLC

 

Acquisition of Korns Galvanizing

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 the
business and assets of Korns Galvanizing Company Inc. ("Korns") for a cash
consideration of $11.3m (c.£9.4m), on a debt and cash free basis, which will
be funded from the Group's existing banking facilities.

Korns, located in Johnstown, Pennsylvania, has a single site specialising in
spin galvanizing and generated revenues of $5.5m in 2022. The operating profit
margin is modestly below the divisional average, and we would expect this to
improve as our operating model is adopted and operating synergies are
realised. Korns has a customer base spread across a wide range of
infrastructure related end markets, including commercial construction, fire
protection, oil & gas and utilities.

Korns has operated under private family ownership for over thirty-five years
and will be managed by the Group's existing US galvanizing business team. The
acquisition will expand our production capacity in the key northeastern US
market and broaden the range of galvanizing services we can offer to our
existing customer base.

Alan Giddins, Executive Chair, said:

"The acquisition of Korns is in line with our strategy to undertake
disciplined M&A with a focus on niche markets with excellent long term
growth potential. The acquisition strengthens our presence in the growing US
galvanizing market, brings a complementary customer base and broadens the
services we can offer to our existing customers. I am delighted to welcome
Korns, a business we know well, and its employees to Hill & Smith."

 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.4,000 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 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 with
low embodied energy 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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