REG - Hill & Smith PLC - Acquisition of United Fiberglass

Hill & SmithAnnouncement

17/11/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231117:nRSQ7474Ta&default-theme=true

RNS Number : 7474T  Hill & Smith PLC  17 November 2023

17 November 2023

Hill & Smith PLC

Acquisition of United Fiberglass

Hill & Smith PLC ("Hill & Smith" or "the Group"), the international
provider of sustainable infrastructure products and services, today announces
the acquisition of United Fiberglass of America Inc ("United Fiberglass").

 

Acquisition of United Fiberglass
The Group has completed the acquisition of the business and assets of United Fiberglass from a charitable foundation. The management team will be staying with the business. The cash consideration is $14.0m (c.£11.4m), on a debt and cash free basis, and will be funded from the Group's existing banking facilities.

United Fiberglass, located in Springfield, Ohio, is a designer, manufacturer
and supplier of composite pipe, conduit, and bridge drain infrastructure
systems. Its products, with a combination of high strength, lightweight and
resistance to corrosion can be found in a wide range of application
environments, above and below ground, including those serving utility,
infrastructure, transportation and industrial markets across the US.

United Fiberglass will become part of Hill & Smith's composites business,
Creative Composites Group, within our Engineered Solutions division.  The
business is highly complementary to our existing composite activities and will
further accelerate our strategy in this exciting and growing market, expanding
our customer base and product range, while also providing additional
manufacturing capability and purchasing synergies.

In the 12 months to 30 September 2023, United reported unaudited revenue of
$9.9m, adjusted EBIT of $1.8m and gross assets(*) of $7.2m. The acquisition
is expected to be earnings enhancing to the Group in 2024.

(*)As at 30 September 2023

Alan Giddins, Executive Chair, said:

"The acquisition of United Fiberglass is in line with our strategy of
acquiring businesses within niche markets with strong long-term growth
potential and doing so outside of a formal auction process.  United
Fiberglass is a business we have known for many years and is an excellent fit
with our existing, high growth US composites business. I am delighted to
welcome United Fiberglass 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.4,250 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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQEAXFKFFFDFFA