Hill & Smith PLC (LON:HILS), the international group creating sustainable infrastructure and safe transport through innovation, has announced that it has completed the acquisition of the business and assets of Korns Galvanizing Company Inc. for a cash consideration of $11.3m (c.£9.4m), on a debt and cash free basis, which will be funded from the Group’s existing banking facilities.
Korns, located in Johnstown, Pennsylvania, has a single site specialising in spin galvanizing and generated revenues of $5.5m in 2022. The operating profit margin is modestly below the divisional average, and we would expect this to improve as our operating model is adopted and operating synergies are realised. Korns has a customer base spread across a wide range of infrastructure related end markets, including commercial construction, fire protection, oil & gas and utilities.
Korns has operated under private family ownership for over thirty-five years and will be managed by the Group’s existing US galvanizing business team. The acquisition will expand our production capacity in the key northeastern US market and broaden the range of galvanizing services we can offer to our existing customer base.
Alan Giddins, Executive Chair, said:
“The acquisition of Korns is in line with our strategy to undertake disciplined M&A with a focus on niche markets with excellent long term growth potential. The acquisition strengthens our presence in the growing US galvanizing market, brings a complementary customer base and broadens the services we can offer to our existing customers. I am delighted to welcome Korns, a business we know well, and its employees to Hill & Smith.”
