10th Sep 2024 09:49
(Alliance News) - Hill & Smith PLC announced on Tuesday it has completed its acquisition of US-based Whitlow Electric Service Co Inc.
Whitlow Electric Service is based in Elberton, Georgia. It designs and manufactures a range of structural steel and substation components for the US electrical infrastructure market, with a focus on Georgia, North Carolina, South Carolina, Virginia and Tennessee.
Hill & Smith is a West Midlands, England-based provider of infrastructure products. It is paying USD30.2 million cash on a debt and cash free basis to acquire the business and assets of Whitlow from its shareholder, Bruce Whitlow, who will be staying with the business.
Whitlow will become part of the V&S Utilities Group within Hill & Smith's engineered solutions division. This acquisition builds on the successful integration of Capital Steel in January and, with a well-invested facility, Whitlow will increase the company's structural steel fabrication capacity and present good opportunities for cross-selling and margin expansion, Hill & Smith said.
In 2023, Whitlow reported revenue of USD27.4 million and adjusted earnings before interest and taxation of USD3.1 million.
The acquisition will be funded from Hill & Smith's existing borrowing facilities and is expected to be "moderately earnings enhancing" for the company in 2024.
Executive Chair Alan Giddins 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."
Shares in Hill & Smith were up 0.8% at 2,020.00 pence each in London on Tuesday morning.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.