Acquisition of Korns Galvanizing
8 March 2023
Hill & Smith PLC
Acquisition of Korns Galvanizing
Hill & Smith PLC ("Hill & Smith" or "the Group"), the international group creating sustainable infrastructure and safe transport through innovation, today announces that it has completed the acquisition of the business and assets of Korns Galvanizing Company Inc. ("Korns") for a cash consideration of $11.3m (c.£9.4m), on a debt and cash free basis, which will be funded from the Group's existing banking facilities.
Korns, located in Johnstown, Pennsylvania, has a single site specialising in spin galvanizing and generated revenues of $5.5m in 2022. The operating profit margin is modestly below the divisional average, and we would expect this to improve as our operating model is adopted and operating synergies are realised. Korns has a customer base spread across a wide range of infrastructure related end markets, including commercial construction, fire protection, oil & gas and utilities.
Korns has operated under private family ownership for over thirty-five years and will be managed by the Group's existing US galvanizing business team. The acquisition will expand our production capacity in the key northeastern US market and broaden the range of galvanizing services we can offer to our existing customer base.
Alan Giddins, Executive Chair, said:
"The acquisition of Korns is in line with our strategy to undertake disciplined M&A with a focus on niche markets with excellent long term growth potential. The acquisition strengthens our presence in the growing US galvanizing market, brings a complementary customer base and broadens the services we can offer to our existing customers. I am delighted to welcome Korns, a business we know well, and its employees to Hill & Smith."
ENDS
For further information, please contact:
Hill & Smith PLC Tel: +44 (0)121 704 7434
Alan Giddins, Executive Chair
Hannah Nichols, Chief Financial Officer
MHP Tel: +44 (0)20 3128 8613
Reg Hoare
Rachel Farrington
Catherine Chapman
Notes to Editors
Hill & Smith PLC creates sustainable infrastructure and safe transport through innovation. The Group employs c.4,000 people worldwide with the majority employed by its autonomous, agile, customer focussed operating businesses based in the UK, USA, Australia, India and Sweden. The Group office is in the UK and Hill & Smith PLC is quoted on the London Stock Exchange (LSE: HILS.L).
The Group's operating businesses are organised into three main business divisions:
Galvanizing Services: increasing the sustainability and maintenance free life of steel products including structural steel work, lighting, bridges and other products for industrial and infrastructure markets.
Engineered Solutions: supplying engineered steel and composite solutions with low embodied energy for a wide range of infrastructure markets including power generation and distribution, marine, rail and housing. The division also supplies engineered pipe supports for the water, power and liquid natural gas markets and seismic protection solutions.
Roads & Security: supplying products and services to support road and highway infrastructure including temporary and permanent road safety barriers, Intelligent Traffic Solutions, street lighting columns and bridge parapets. In addition, the division includes two businesses which are market leaders in the provision of off-grid solar lighting and power solutions. The security portfolio includes hostile vehicle mitigation solutions, high security fencing and automated gate solutions.
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