Business
Acquisition of Trident Industries
Acquisition of Trident Industries.
About this update from Hill & Smith Plc
[{"type":"text","content":"\n\n8 August 2024\nHill & Smith PLC\nAcquisition of Trident Industries\nHill & Smith PLC (\"Hill & Smith\" or \"the Group\"), the international provider of sustainable infrastructure products and services, today announces the acquisition of Trident Industries, LLC (\"Trident\").\nThe Group has completed the acquisition of the business and assets of Trident for an initial cash consideration of $13.5m (c.£10.6m), on a debt and cash free basis. Further cash consideration of up to $32.5m (c.£25.6m) is payable based on future revenues over the five years post-acquisition. The business has been acquired from two private shareholders. The current management team, who are not shareholders, will be staying with the business.\nLocated in Greater St Louis, Illinois, Trident is a designer and supplier of composite utility poles, serving utility company needs across North America and the Caribbean. Trident's single and multi-layer utility poles are designed for strength and resilience and can be used in a wide range of applications including storm hardening and self-supporting pole projects. The business has a long-term outsourced manufacturing relationship with Enduro Composites, which was acquired by Hill & Smith in February 2023, and will become part of the Creative Composites Group within the Engineered Solutions division.\nThe acquisition is highly complementary to our existing composite utility pole offering and will further accelerate our strategy in the attractive US electricity transmission and distribution market, expanding our product range and customer base and providing cross selling opportunities.\nIn the 12 months to 31 December 2023, Trident reported unaudited revenue of $23.3m (c.£18.3m), adjusted EBIT of $5.7m (c.£4.5m) and gross assets as at 31 December 2023 of $6.8m (c.£5.3m).\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\"Trident is a business we have known and worked with for many years and is an excellent fit with our existing US composites business. The acquisition will expand our product range and customer base and provide cross selling opportunities, further accelerating our strategy in this exciting and long-term growth market. I am delighted t...