Hill & Smith buys a US business
West Midlands business Hill & Smith, which provides infrastructure and construction products, has expanded by buying US-based Trident Industries.
Hill & Smith has its headquarters at Solihull and includes barriers firm Hill & Smith Infrastructure at Springvale Business Park, Bilston.
The deal includes an initial payment of around £10.6 million with up to an additional £25.6m depending on future revenue over the next five years.
Trident is based in Greater St Louis, Illinois. It designs and supplies composite utility poles for North America and the Caribbean.
It will join the creative composites group within Hill & Smith’s engineered solutions division.
Hill & Smith has reported revenue up 0.4 per cent to £422.7m for the six months to the end of June. Pre-tax profit rose 20 per cent to £57.8m.
The acquisition of Trident is funded by Hill & Smith’s existing borrowing facilities and is expected to boost earnings in 2024.
Alan Giddins, executive chairman, said: “Trident is a business we have known and worked with for many years and is an excellent fit with our existing US composites business. The acquisition will expand our product range and customer base and provide cross-selling opportunities, further accelerating our strategy in this exciting and long-term growth market. I am delighted to welcome Trident and its employees to the group.
“This is the third acquisition we have completed so far in 2024 as we continue to successfully deliver inorganic growth at attractive returns to drive the future growth of the group.”
Mr Giddins said Hill & Smith had delivered another good first half performance, underpinned by continuing strong demand for its products and services in the US and the strong performance from our most recent acquisitions.