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Hill & Smith PLC (LSE:HILS), an international provider of infrastructure products and services, has finalized the acquisition of Trident Industries, LLC. The acquisition involves an initial cash payment of $13.5 million (approximately £10.6 million), with additional payments of up to $32.5 million (around £25.6 million) contingent on future revenues over the next five years. The transaction was completed on a debt and cash-free basis and involved acquiring the business and assets from two private shareholders. The current management team, who are not shareholders, will continue to lead the business.
Company Profile and Strategic Fit
Trident Industries, based in Greater St. Louis, Illinois, specializes in designing and supplying composite utility poles. These poles cater to utility companies throughout North America and the Caribbean. Trident's product range includes single and multi-layer utility poles, which are noted for their strength and resilience. These poles are used in various applications, such as storm hardening and self-supporting pole projects. Trident maintains a long-term outsourced manufacturing arrangement with Enduro Composites, acquired by Hill & Smith in February 2023. Trident will join the Creative Composites Group within Hill & Smith’s Engineered Solutions division.
Financial Performance
For the year ending December 31, 2023, Trident reported unaudited revenues of $23.3 million (approximately £18.3 million) and adjusted EBIT of $5.7 million (around £4.5 million). The gross assets of Trident as of December 31, 2023, were $6.8 million (about £5.3 million). The acquisition is anticipated to be funded through Hill & Smith’s existing borrowing facilities and is projected to enhance the Group’s earnings in 2024.
Executive Comment
Alan Giddins, Executive Chair of Hill & Smith, commented on the acquisition, stating that Trident has been a longstanding partner and aligns well with Hill & Smith’s existing composite utility pole business in the U.S. He noted that the acquisition would broaden the Group’s product range and customer base, offering new cross-selling opportunities. Giddins expressed satisfaction with the acquisition, highlighting it as the third acquisition for Hill & Smith in 2024, reflecting the Group’s strategy for inorganic growth and future development.
