10 September 2024
Hill & Smith PLC
Acquisition of Whitlow
Electric
Hill & Smith PLC ("Hill &
Smith" or "the Group"), the international provider of sustainable
infrastructure products and services, today announces the
acquisition of Whitlow Electric Service Company
("Whitlow").
Acquisition of Whitlow
The Group has completed the
acquisition of the business and assets of Whitlow from its
shareholder, Bruce Whitlow, who will be staying with the business.
The cash consideration is $30.2m (c.£23m), on a debt and cash free
basis.
Whitlow, located in Elberton,
Georgia, designs and manufactures a range of structural steel and
substation components for the US electrical infrastructure market.
Whitlow was founded in 1963 and is a business that the Group has
known for many years, serving customers' utility infrastructure
needs across the Southeast of the US, with a focus on Georgia,
North Carolina, South Carolina, Virginia and Tennessee.
Whitlow will become part of the
V&S Utilities Group, within our Engineered Solutions division,
and builds on the successful acquisition and integration of Capital
Steel in January 2024, broadening our geographic footprint in the
US and providing access to new customers in the attractive
Southeast market. With a well invested facility, it will also
increase our structural steel fabrication capacity and present good
opportunities for cross selling and margin expansion.
In the 12 months to 31 December
2023, Whitlow reported unaudited revenue of $27.4m, adjusted EBIT
of $3.1m and gross assets as at 31 December 2023 of $10.7m.
The acquisition will be funded from the Group's existing
borrowing facilities and is expected to be modestly earnings
enhancing to the Group in 2024.
Alan Giddins, Executive Chair,
said:
"The acquisition of Whitlow is an
excellent fit for Hill & Smith. The business operates in the
high growth US electrical infrastructure market and builds on the
successful acquisition and integration of Capital Steel earlier
this year, adding a presence in the attractive Southeast US market.
I am delighted to welcome Bruce Whitlow and his team to the
Group.
We have now completed four
acquisitions in 2024, consistent with our strategy to acquire
complementary businesses within attractive, high growth
markets."
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
Notes to
Editors
Hill & Smith PLC is a leading provider of sustainable
infrastructure products and services. The Group employs c4,500
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.