Acquisition of Work Area Protection Corp.

RNS Number : 4327N
Hill & Smith Hldgs PLC
09 May 2018
 

9 May 2018

Hill & Smith Holdings PLC

Acquisition of Work Area Protection Corp.

 

Hill & Smith Holdings PLC ("Hill & Smith" or "the Group"), 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 the business and assets of Work Area Protection Corp., and its associated affiliates ("WAPCO") for a total cash consideration of $42.0m, on a debt free, cash free basis. The consideration paid represents a multiple of 8.7 times average adjusted EBITDA of the preceding two financial years and will be funded from the Group's existing bank facilities.

 

Based in Illinois and Texas, USA, WAPCO was a business of New Enterprise Stone & Lime Co. Inc., and specialises in the development, manufacture, and distribution of a wide range of road work zone safety products, including crash attenuators, temporary variable message signs, smart work zone systems and traffic control products such as drums, channelizers and cones. Representative of ongoing trading, in the two years ended 28 February 2018, WAPCO recorded average revenue of $47.7m and adjusted EBITDA of $4.8m. The acquisition is expected to be earnings enhancing to the Group in the first full financial year following the acquisition.

 

The combination of WAPCO's business with Hill & Smith's existing US and international roads businesses will increase the scale and range of road safety products supplied into key geographies where the infrastructure investment outlook is strong.

 

Derek Muir, Group Chief Executive, commented: "WAPCO offers a wide range of innovative solutions for the traffic safety and highway infrastructure markets, and its excellent reputation for high quality products and service delivery is well-deserved. The acquisition provides Hill & Smith with a strong platform to accelerate the expansion of both our existing US and international road businesses and we are excited to welcome WAPCO and its employees to the Group."

 

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Cautionary Statement

This announcement contains forward looking statements which are made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of risks and uncertainties that are inherent in any forward looking statement which could cause actual results to differ materially from those currently anticipated. Nothing in this document should be regarded as a profits forecast nor should it be taken to mean that earnings per share of Hill & Smith in the year ending 31 December 2018, or in future years, will necessarily match or exceed the Group's historical earnings per share.

 

 

For further information, please contact:

 

Hill & Smith Holdings PLC

Derek Muir, Group Chief Executive

Tel:  +44 (0)121 704 7430

Mark Pegler, Group Finance Director


MHP Communications

Andrew Jaques / Vera Prokhorenko

Tel:  +44 (0)20 3128 8100

 

 

 

Notes to Editors

Hill & Smith Holdings PLC is an international group with leading positions in the design, manufacture and supply of infrastructure products and galvanizing services to global markets. It serves its customers from facilities principally in the UK, France, USA, Sweden, Norway, India and Australia.

 

The Group's operations are organised into three main business segments:

 

Infrastructure Products - Roads, supplying products and services such as permanent and temporary road safety barriers, hostile vehicle mitigation products, street lighting columns, bridge parapets, temporary car parks and variable road messaging solutions.

 

Infrastructure Products - Utilities, supplying products and services such as pipe supports for the power and liquid natural gas markets, energy grid components, composite "GRP" products, plastic drainage pipes, industrial flooring, handrails, access covers and security fencing.

 

Galvanizing Services which provides zinc and other coatings for a wide range of products including fencing, lighting columns, structural steel work, bridges, agricultural and other products for the infrastructure and construction markets.

 

Headquartered in the UK and quoted on the London Stock Exchange (LSE: HILS.L), Hill & Smith Holdings PLC employs some

4,200 staff, principally in seven countries.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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