Infrastructure giant swoops for US steel fabricator in £23m deal
Hill & Smith has completed its fourth acquisition of the year with the £23m ($30.2m) purchase of Whitlow Electric Service Company.
Located in Elberton, Georgia, Whitlow designs and manufactures a range of structural steel and substation components for the US electrical infrastructure market. Founded in 1963, the business has served customers’ utility infrastructure needs across the Southeast of the US, with a focus on Georgia, North Carolina, South Carolina, Virginia and Tennessee.
It’s been acquired from its shareholder, Bruce Whitlow, who will be staying with the business.
The infrastructure giant will integrate Whitlow into its V&S Utilities Group, within the Engineered Solutions division, building on the acquisition and integration of Capital Steel in January 2024. Both deals have broadened Hill & Smith’s geographic footprint in the US, with the latest acquisition providing access to new customers in the Southeast market.
Hill & Smith says that a well-invested facility will also increase its structural steel fabrication capacity and present good opportunities for cross-selling and margin expansion.
In the 12 months to 31 December 2023, Whitlow reported revenues of $27.4m, adjusted EBIT of $3.1m and gross assets of $10.7m. The acquisition will be funded from Hill & Smith’s existing borrowing facilities and is expected to enhance earnings for the group in 2024 modestly.
Alan Giddins, executive chair of Hill & Smith 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.”
