Tue, 09 Jan 2024 | BUSINESS SALE
Hill & Smith Holdings, a manufacturing firm headquartered in Solihull, has continued its M&A-driven growth with the acquisition of a company based in New Jersey, USA. The company has acquired Capital Steel Service, LLC, a supplier of structural steel products based in Trenton.
The company, which principally serves the electrical transmission and distribution market, has been acquired from shareholder Robert Hickman, who will remain with the business post-sale. The deal, reported to be worth around $6.25 million (£5 million) as well as a further $1.2 million (£944,000) in a performance-related add-on, is the fourth acquisition that Hill & Smith Holdings has completed in the past 12 months.
Capital Steel Service has served the US East Coast’s utility and infrastructure market for over 25 years, focusing primarily on New York, New Jersey and Pennsylvania. Following the acquisition, the firm will be integrated into V&S Schuler Utilities Group, within Hill & Smith's engineering solutions division.
Alan Giddins, Executive Chair of Hill & Smith Holdings, commented: "Capital Steel operates in one of our most attractive end markets, and the acquisition is in line with our strategy of acquiring businesses with strong long-term growth potential.”
"We have known the business for many years, and it is an excellent fit with our existing, high growth US utility business. I am delighted to welcome Robert Hickman and his employees to the group."
Hill & Smith said that the deal would expand its “geographical customer base, generate material cross selling opportunities and provide additional manufacturing capacity and capability”.
The company added that the deal expected to be earnings enhancing to the group, with Capital Steel reporting revenues of $8.1 million (approximately £6.3 million) for the year ending August 2023 and adjusted pre-tax earnings of around $1 million (around £786,500).
Read more about trends shaping M&A in the UK manufacturing sector.
Seeking parties interested in the business and assets of a company that trades as a fabricator sub-contractor for large construction companies.
The company is well-established and operates from a third party owned quarry in Lincolnshire. The business quarries, manufactures and supplies a range of aggregate products, gabion stone and provides associated products and services throughout the Un...
An exciting opportunity to purchase the leading UK security, fire and Passivhaus doorset manufacturing company. A specialist in providing accredited doors for communal and multi-occupancy buildings, with the designs now established as market leading.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.