Hill & Smith Holdings PLC (LON:HILS), the international group with leading positions in the supply of infrastructure products and galvanizing services to global markets, today announces that it has completed the acquisition of ATG Access Limited, from LDC and private shareholders, for a cash consideration of £22.5m, on a debt and cash free basis (the “Acquisition”). The consideration will be funded from the Group’s existing bank facilities.
Based in the UK and exporting to over 30 countries, ATG specialises in the development, manufacture, and installation of hostile vehicle mitigation perimeter security solutions including bollards (automated, static, impact and non-impact tested), road blockers, barriers and gates. Representative of ongoing trading, in the unaudited twelve months to 31 October 2018, ATG recorded turnover of £21.1m, adjusted EBITDA of £2.5m, and had net operating assets, on a debt and cash free basis of £0.6m. The Acquisition is expected to be earnings enhancing to the Group in the first full financial year following acquisition.
Derek Muir, Group Chief Executive, commented: “ATG provides high security and traffic management solutions and is the UK’s leading manufacturer of bollards, road blockers and vehicle barrier systems. 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. We are excited to welcome ATG and its employees to the Group.”
The Group today also announces that in January it amended and extended its principal debt facility, extending the term to January 2024 and increasing the tenor by £50m to c.£280m, with no material impact on costs. The financial covenants on the syndicated revolving credit facility remain unchanged. The amendment provides the Group with extended certainty of funding and further increases the headroom available to the Group in order to pursue growth opportunities.
