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.
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