Hill & Smith hits the acquisition trail with £10m deal

Derek Muir

SHIRLEY-based engineering group, Hill & Smith, has strengthened its portfolio with a £10m acquisition – its second eight-figure deal in the space of two months.

The group, which specialises in the infrastructure products and galvanizing services sectors, has completed the acquisition of Technocover in a £10m deal. The deal will be funded from the group’s existing bank facilities.

The deal comes just two months after the group invested £11m in the acquisition of Nottingham-based Hardstaff Barriers, which supplies and installs concrete barriers used for motorway repairs and the protection of vulnerable buildings and sites.
 
Based in Welshpool, Technocover was a subsidiary of Ensor Holdings and specialises in the development, manufacture, installation and maintenance of high security access products for the utilities markets.

It has been designing and manufacturing innovative steel access products since September 1993 and became part of Ensor in January 2012.

In the year to March 31, 2016, Technocover recorded turnover of £14.7m, operating profit of £1.5m (before Ensor Holdings’ group charges), and had net operating assets, on a debt and cash free basis of £3.7m.

The acquisition is expected to be earnings enhancing to the group in the first full financial year following integration into the Hill & Smith Utilities division.
 
Derek Muir, group chief executive, Hill & Smith, said: “Technocover has an excellent reputation for quality and service and will benefit from being part of the group’s UK Utilities division.”

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