Business
Acquisition of FM Stainless
Acquisition of FM Stainless.
About this update from Hill & Smith Plc
[{"type":"text","content":"\n\n12 March 2024\nHill & Smith PLC\nAcquisition of FM Stainless\nHill & Smith PLC (\"Hill & Smith\" or \"the Group\"), the international provider of sustainable infrastructure products and services, today announces the acquisition of FM Stainless, LLC (\"FM Stainless\").\nAcquisition of FM Stainless \nThe Group has completed the acquisition of the business and assets of FM Stainless from its principal shareholder, Chad Hood, who will be staying with the business. The initial cash consideration is $8.25m (c.£6.6m), on a debt and cash free basis. Further cash consideration of up to $0.5m (c.£0.4m) is payable, conditional on achievement of financial performance targets in the year following acquisition.\nFM Stainless, located in Ellijay, Georgia, manufactures stainless steel pipe supports, expansion anchors and fasteners principally for water and waste water, attractive end markets with strong growth prospects underpinned by significant multi-year investment in water infrastructure. FM Stainless sells its products across the US, with particular focus within the southeast region, a geography which has seen favourable demographic movements.\nFM Stainless will become part of The Paterson Group, within our Engineered Solutions division and will expand our geographical customer base, generate cross selling opportunities and provide additional manufacturing capacity and capability.\nIn the 12 months to 31 December 2023, FM Stainless reported unaudited revenue of $8.6m, adjusted EBIT of $1.6m and gross assets as at 31st December 2023 of $5.5m.\nThe acquisition will be funded from the Group's existing borrowing facilities and is expected to be earnings enhancing to the Group in 2024.\nAlan Giddins, Executive Chair, said:\n\"The acquisition of FM Stainless will expand our geographical customer base, increase our manufacturing capability and generate material cross selling opportunities in an attractive growth market. I am delighted to welcome FM Stainless and its employees to the Group.\"\n \nFor further information, please contact:\nHill & Smith PLC\nAlan Giddins, Executive Chair &nbs...