REG - Hill & Smith PLC - Acquisition of Whitlow Electric

Hill & SmithAnnouncement

10/09/2024 07:00

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RNS Number : 5087D  Hill & Smith PLC  10 September 2024

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.

 

 

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