Hill & Smith Hldgs PLC Acquisition of Work Area Protection Corp. (4327N)
May 09 2018 - 1:01AM
UK Regulatory
TIDMHILS
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."
- Ends -
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 Tel: +44 (0)121 704 7430
Executive
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
END
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