Hill & Smith’s US window of opportunity
Article Date: Aug 26 2008The board of construction products manufacturer Hill & Smith has confirmed that the latest step in its international expansion plans will be an acquisition in the US. The West Midlands-based company, which makes parts for the transport, construction, utilities and electrical sectors, has agreed to buy Creative Pultrusions.
The acquisition of the glass reinforced plastic products maker is due to complete in early September and could cost Hill & Smith up to US$21 million (£11.4 million).
The consideration will be settled in cash with some £9.6 million due on completion. The balance will be paid at a later date depending on the acquired company hitting agreed profit targets in the next 12 months and to cover any warranty claims it may receive.
This deal follows a trading relationship formed by the companies two years ago where Creative Pultrusions has provided technological assistance to support Hill & Smith’s Redman Fisher subsidiary to manufacture pultruded glass reinforced plastic products at its Telford factory.
Creative Pultrusions was sold by Robert Sweet, who is to retire from the business on completion, 36 years after he founded it. He is to be succeeded as chief executive by current chief operating officer Shane Weyant.
In the year to September 2007, Pennsylvania-based Creative Pultrusions reported EBITDA of $3.7 million (£2 million) on revenues of $32.7 million (£17.8 million).
