LONDON, UK: Hill & Smith Plc, the international group creating sustainable infrastructure and safe transport through innovation, has completed the acquisition of Enduro Composites Inc.
The sellers are a group of private shareholders, including the management team, who had a small minority shareholding in Enduro, and will be staying with the business. The cash consideration for the acquisition is $35 million (c.£28.7m), on a debt and cash free basis, and will be funded from the Group’s existing banking facilities.
Enduro Composites, located in Houston, Texas, is a designer, manufacturer and supplier of engineered composite solutions focused on industrial and infrastructure market segments. Its products can be used in a wide variety of applications in conditions that require high strength, light weight and resistance to corrosion.
Enduro Composites will become part of the Group’s Engineered Solutions division, is highly complementary to our existing northeastern and midwestern US composite businesses and will further accelerate our strategy in this exciting and growing market. The acquisition will expand our customer base and product range, add an extensive manufacturing facility in the key Gulf Coast region and provide the opportunity for manufacturing process enhancements.
In the 12 months to 31 December 2022, Enduro reported unaudited adjusted revenue of $47.0m, adjusted EBIT of $4.5m and gross assets* of $22.9m. The acquisition is expected to be earnings enhancing to the Group in 2023.
Following completion of the transaction, the Group’s leverage will increase to c. 0.9 times, providing further capacity to continue with our expansion plans.
Alan Giddins, Executive Chair, said: “The acquisition of Enduro is in line with our strategy to undertake disciplined M&A that is aligned to our focus on niche markets with excellent long term growth potential. The acquisition of Enduro will further develop our product offering and expand our geographical coverage in the highly attractive composites market. I am delighted to welcome Enduro and its employees to the Group.”