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Hill & Smith PLC (LSE:HILS), an international provider of sustainable infrastructure products and services, has announced the acquisition of Trident Industries, LLC (Trident). The transaction involves an initial cash consideration of $13.5 million (approximately £10.6 million) on a debt and cash-free basis, with an additional contingent consideration of up to $32.5 million (approximately £25.6 million) based on future revenues over the next five years. The acquisition has been completed from two private shareholders, while the current management team will remain with the business.
Trident Industries Profile
Located in Greater St. Louis, Illinois, Trident is a leading designer and supplier of composite utility poles, catering to utility companies across North America and the Caribbean. Trident's utility poles, known for their strength and resilience, are suitable for various applications including storm hardening and self-supporting pole projects. Trident will now become part of the Creative Composites Group within HIL's Engineered Solutions division.
Complementary Business Synergies
The acquisition of Trident Industries complements Hill & Smith’s existing composite utility pole offerings, enhancing its strategic presence in the US electricity transmission and distribution market. This acquisition will expand Hill & Smith's product range and customer base, providing significant cross-selling opportunities.
Financial Performance and Future Outlook
In the 12 months ending December 31, 2023, Trident reported unaudited revenues of $23.3 million (approximately £18.3 million), an adjusted EBIT of $5.7 million (approximately £4.5 million), and gross assets valued at $6.8 million (approximately £5.3 million). The acquisition is anticipated to be earnings accretive for Hill & Smith in 2024, funded through the Group's existing borrowing facilities.
Strategic Growth in the US Market
Hill & Smith's acquisition of Trident Industries represents a strategic move to bolster its presence in the US infrastructure market, particularly in the electricity transmission and distribution sector. This acquisition aligns with the Group's growth strategy, leveraging Trident's established market position and innovative product offerings to drive further expansion and value creation.
