Acquisition of Prolectric Services Ltd
2 March 2021
Hill & Smith Holdings PLC
Acquisition of Prolectric Services Ltd
Hill & Smith Holdings PLC ("Hill & Smith" or "the Group"), the international group providing sustainable infrastructure and safe transport solutions, today announces that it has completed the acquisition of Prolectric Services Ltd ("Prolectric"), from shareholders including the management team who will be staying with the business. The initial cash consideration is £12.5m, on a debt and cash free basis. A further cash consideration of up to £5.7m is payable conditional on Prolectric's achievement of financial performance targets in the 12 months post-acquisition. The total consideration will be funded from the Group's existing banking facilities.
Prolectric, located in Clevedon, North Somerset, is a UK market leader in off-grid solar energy solutions. It offers a range of remotely monitored lighting and security products, either for rental or sale, which are field proven in rail, road and other niche infrastructure applications. The technology also enables customers to measure the reduction in CO2 emissions versus diesel powered alternatives. The business benefits from the ongoing transition from fossil fuels to a zero-carbon economy and the need to reduce noise pollution, driven by government legislation and customer demands.
The expected underlying operating profit of Prolectric for the year to March 2021 is c£1.4m with a margin above the current group average. The net operating assets on a debt and cash free basis are £3.7m. The acquisition is expected to be earnings enhancing to the Group in 2021.
Paul Simmons, Chief Executive, said:
"Prolectric is a UK market leader in temporary solar lighting and operates in a market with excellent long term growth potential, driven by the transition from fossil fuels towards renewable energies.
Hill & Smith has significant experience of the markets which Prolectric's customers operate in, and this, alongside Prolectric's innovative product range will further enhance the business's growth. We are delighted to be adding a deep understanding of solar technology to the Group's capabilities and see this as a clear fit. We are excited to welcome Prolectric and its employees to the Group."
The Group's preliminary results for the year ending 31 December 2020 will be announced on 10 March 2021.
ENDS
For further information, please contact:
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Hill & Smith Holdings PLC |
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Paul Simmons, Group Chief Executive Hannah Nichols, Group Chief Financial Officer |
Tel: +44 (0)121 704 7430 |
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MHP Communications |
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Andrew Jaques / James Bavister / Catherine Chapman
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Tel: +44 (0)20 3128 8170
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Notes to Editors
Hill & Smith Holdings PLC creates sustainable infrastructure and safe transport through innovation. The Group employs c4,400 people worldwide with the majority working within its autonomous, agile, customer focussed operating businesses based in the UK, USA, France, Sweden, India and Australia. It has a head office in the UK and is quoted on the London Stock Exchange (LSE: HILS.L).
The Group's operating businesses are organised into three main business segments:
Roads & Security: supplying products and services such as permanent and temporary road safety barriers, street lighting columns, Intelligent Traffic Solutions, variable road messaging solutions, bridge parapets, renewable energy lighting & power solutions, temporary car parks, high security fencing, hostile vehicle mitigation and access covers.
Utilities: supplying products and services such as engineered composite solutions with low embedded energy, assemblies for the distribution of electricity, building products including fire doors, pipe supports for the water, power and liquid natural gas markets, industrial flooring and seismic protection solutions.
Galvanizing Services: dramatically increasing the sustainability and maintenance free life of steel products including structural steel work, lighting, bridges, agricultural and other products for the industrial and infrastructure markets.
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