LONDON: Hill & Smith PLC today announced the acquisition of Whitlow Electric Service Company.
The Group has completed the acquisition of the business and assets of Whitlow from its shareholder, Bruce Whitlow, who will be staying with the business.
The cash consideration is $30.2m (c.£23m), on a debt and cash free basis.
Whitlow Electric Service, located in Elberton, Georgia, designs and manufactures a range of structural steel and substation components for the US electrical infrastructure market.
Whitlow was founded in 1963 and is a business that the Group has known for many years, serving customers’ utility infrastructure needs across the Southeast of the US, with a focus on Georgia, North Carolina, South Carolina, Virginia and Tennessee.
Whitlow will become part of the V&S Utilities Group, within our Engineered Solutions division, and builds on the successful acquisition and integration of Capital Steel in January 2024, broadening our geographic footprint in the US and providing access to new customers in the attractive Southeast market.
With a well invested facility, it will also increase our structural steel fabrication capacity and present good opportunities for cross selling and margin expansion.
In the 12 months to 31 December 2023, Whitlow reported unaudited revenue of $27.4m, adjusted EBIT of $3.1m and gross assets as at 31 December 2023 of $10.7m.
The acquisition will be funded from the Group’s existing borrowing facilities and is expected to be modestly earnings enhancing to the Group in 2024.
Alan Giddins, Executive Chair, said: “The acquisition of Whitlow is an excellent fit for Hill & Smith. The business operates in the high growth US electrical infrastructure market and builds on the successful acquisition and integration of Capital Steel earlier this year, adding a presence in the attractive Southeast US market. I am delighted to welcome Bruce Whitlow and his team to the Group.
We have now completed four acquisitions in 2024, consistent with our strategy to acquire complementary businesses within attractive, high growth markets.”