Business
Acquisition of Whitlow Electric
Acquisition of Whitlow Electric.
About this update from Hill & Smith Plc
[{"type":"text","content":"\n\n10 September 2024\nHill & Smith PLC\nAcquisition of Whitlow Electric \n \nHill & Smith PLC (\"Hill & Smith\" or \"the Group\"), the international provider of sustainable infrastructure products and services, today announces the acquisition of Whitlow Electric Service Company (\"Whitlow\").\n \nAcquisition of Whitlow\nThe Group has completed the acquisition of the business and assets of Whitlow from its shareholder, Bruce Whitlow, who will be staying with the business. The cash consideration is $30.2m (c.£23m), on a debt and cash free basis.\n \nWhitlow, located in Elberton, Georgia, designs and manufactures a range of structural steel and substation components for the US electrical infrastructure market. Whitlow was founded in 1963 and is a business that the Group has known for many years, serving customers' utility infrastructure needs across the Southeast of the US, with a focus on Georgia, North Carolina, South Carolina, Virginia and Tennessee.\n \nWhitlow will become part of the V&S Utilities Group, within our Engineered Solutions division, and builds on the successful acquisition and integration of Capital Steel in January 2024, broadening our geographic footprint in the US and providing access to new customers in the attractive Southeast market. With a well invested facility, it will also increase our structural steel fabrication capacity and present good opportunities for cross selling and margin expansion.\n \nIn the 12 months to 31 December 2023, Whitlow reported unaudited revenue of $27.4m, adjusted EBIT of $3.1m and gross assets as at 31 December 2023 of $10.7m. The acquisition will be funded from the Group's existing borrowing facilities and is expected to be modestly earnings enhancing to the Group in 2024.\n \nAlan Giddins, Executive Chair, said:\n \n\"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.\n \nWe have now completed four acquisitions in 2024, consistent with our strategy to acquire complementary businesses with...