REG - Hill & Smith PLC - Acquisition of Trident Industries

Hill & SmithAnnouncement

08/08/2024 07:15

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RNS Number : 6221Z  Hill & Smith PLC  08 August 2024

8 August 2024

Hill & Smith PLC

Acquisition of Trident Industries

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

The Group has completed the acquisition of the business and assets of Trident
for an initial cash consideration of $13.5m (c.£10.6m), on a debt and cash
free basis. Further cash consideration of up to $32.5m (c.£25.6m) is payable
based on future revenues over the five years post-acquisition.  The business
has been acquired from two private shareholders. The current management team,
who are not shareholders, will be staying with the business.

Located in Greater St Louis, Illinois, Trident is a designer and supplier of
composite utility poles, serving utility company needs across North America
and the Caribbean. Trident's single and multi-layer utility poles are designed
for strength and resilience and can be used in a wide range of applications
including storm hardening and self-supporting pole projects. The business has
a long-term outsourced manufacturing relationship with Enduro Composites,
which was acquired by Hill & Smith in February 2023, and will become part
of the Creative Composites Group within the Engineered Solutions division.

The acquisition is highly complementary to our existing composite utility pole
offering and will further accelerate our strategy in the attractive US
electricity transmission and distribution market, expanding our product range
and customer base and providing cross selling opportunities.

In the 12 months to 31 December 2023, Trident reported unaudited revenue of
$23.3m (c.£18.3m), adjusted EBIT of $5.7m (c.£4.5m) and gross assets as at
31 December 2023 of $6.8m (c.£5.3m).

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:

"Trident is a business we have known and worked with for many years and is an
excellent fit with our existing US composites business. The acquisition will
expand our product range and customer base and provide cross selling
opportunities, further accelerating our strategy in this exciting and
long-term growth market.  I am delighted to welcome Trident and its employees
to the Group.

"This is the third acquisition we have completed so far in 2024 as we continue
to successfully deliver inorganic growth at attractive returns to drive the
future growth of 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.4,500 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.

 

 

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