22nd Feb 2019 08:08
LONDON (Alliance News) - Infrastructure products maker and metal galvaniser Hill & Smith Holdings PLC said Friday it has acquired bollards and barriers maker ATG Access Ltd for GBP22.5 million in cash.
FTSE 250-listed Hill & Smith will fund the deal with its existing bank facilities.
For the year ended October, ATG generated GBP2.5 million in adjusted earnings before interest, taxes, depreciation and amortisation on revenue of GBP21.1 million. Hill & Smith expects the acquisition to be earnings enhancing from the first full year of ownership.
For comparison, in 2017 Hill & Smith generated GBP78.5 million in pretax profit on revenue of GBP585.1 million.
"ATG provides high security and traffic management solutions and is the UK's leading manufacturer of bollards, road blockers and vehicle barrier systems," Hill & Smith Chief Executive Derek Muir said.
"The acquisition provides the group with a strong platform to introduce new products and new geographies, thereby accelerating the expansion of both our existing UK and international roads businesses", Muir added.
Hill & Smith also announced it had extended its principal debt facility by GBP50 million to around GBP280 million.
The extension, the firm added, will have "no material impact" on costs and provides it with "extended certainty of funding and further increases the headroom available to the group in order to pursue growth opportunities."
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