Hill & Smith grows with £10m Swedish acquisition

CONSTRUCTION products supplier Hill & Smith has expanded its business with the acquisition of a Swedish company in a deal worth almost £10m.

The acquisition of ATA of Sweden comes a week after the Shirley-based group secured a £210m financing deal from a consortium of banks.

The ATA deal, announced at £9.8m, has been completed in cash, on a debt free cash free basis, to be financed from the group’s existing bank facilities.

Formed in 1967, ATA is a family owned, distributor of road safety barriers and manufacturer and distributor of road signage, to the infrastructure market in Sweden.  The business operates from four depot locations in Sweden and has headquarters in Stockholm.
 
The business model is close fit with that of Hill & Smith and should lead to growth opportunities for the firm

ATA’s product portfolio comprises permanent road safety barriers, a temporary road safety barrier rental fleet, crash cushions and road signs, including variable message signing.  ATA’s temporary road safety barrier rental model is similar to that of Hill & Smith’s Varioguard product in the UK and offers further opportunities to increase its presence in the road maintenance market, as well as providing additional scope for its existing rental fleet.

The acquisition allows Hill & Smith to enter a strong infrastructure market with a leading distributor and supplier that has an established and complementary product portfolio. ATA also provides the group with potential for expansion in Sweden and into other parts of Scandinavia, consistent with its strategy for international market and earnings growth.

Commenting on the acquisition, Derek Muir, chief executive of Hill & Smith Holdings, said: “ATA provides Hill & Smith with an exciting opportunity to enter the Swedish infrastructure market and a platform for future growth across Scandinavia.   

“Our respective product portfolios and areas of expertise are well aligned, and the combination provides scope for future extension of our offering across other international markets.  The acquisition further broadens our international footprint which is an important element in our overall strategy.”

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