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.
Project Echo invents, designs, and manufactures racking systems for the transport of vehicles into shipping containers for worldwide distribution. All products are designed for safety and longevity, and are highly recyclable, reducing the detrimental...
Presenting to the market this bathroom design and supply specialist established in 2019 and located in Bolton, Lancashire.
Founded in 1984, an exhibition stand design and manufacture contractor located in a prominent trading position in Hertfordshire.
16
|
May
|
Oakfield Estate Agents acquires East Sussex firm | BUSINESS SALE
Oakfield Estate Agents has announced the acquisition of an i...
16
|
May
|
Private equity investor uses invoice finance facility in logistics firm deal | BUSINESS SALE
Private equity investor Shilling Group has acquired a logist...
16
|
May
|
Administrators appointed at broadcasting equipment hire firm | ADMINISTRATION
A Crawley-based company that supplies broadcasting equipment...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
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.