Hill & Smith PLC (LON:HILS), the international provider of sustainable infrastructure products and services, today announces the acquisition of United Fiberglass of America Inc.
Acquisition of United Fiberglass
The Group has completed the acquisition of the business and assets of United Fiberglass from a charitable foundation. The management team will be staying with the business. The cash consideration is $14.0m (c.£11.4m), on a debt and cash free basis, and will be funded from the Group’s existing banking facilities.
United Fiberglass, located in Springfield, Ohio, is a designer, manufacturer and supplier of composite pipe, conduit, and bridge drain infrastructure systems. Its products, with a combination of high strength, lightweight and resistance to corrosion can be found in a wide range of application environments, above and below ground, including those serving utility, infrastructure, transportation and industrial markets across the US.
United Fiberglass will become part of Hill & Smith’s composites business, Creative Composites Group, within our Engineered Solutions division. The business is highly complementary to our existing composite activities and will further accelerate our strategy in this exciting and growing market, expanding our customer base and product range, while also providing additional manufacturing capability and purchasing synergies.
In the 12 months to 30 September 2023, United reported unaudited revenue of $9.9m, adjusted EBIT of $1.8m and gross assets* of $7.2m. The acquisition is expected to be earnings enhancing to the Group in 2024.
*As at 30 September 2023
Alan Giddins, Hill & Smith Executive Chair, said:
“The acquisition of United Fiberglass is in line with our strategy of acquiring businesses within niche markets with strong long-term growth potential and doing so outside of a formal auction process. United Fiberglass is a business we have known for many years and is an excellent fit with our existing, high growth US composites business. I am delighted to welcome United Fiberglass and its employees to the Group.”
