Hill & Smith takes TPG in £27m deal
Hill & Smith, the Solihull-based supplier to the construction industry, has acquired a North American company for $45m (£27.8m). Hill & Smith said the purchase of The Paterson Group (TPG) would create a "global leading supplier" of pipe supports.
The acquisition will be financed from Hill & Smith’s existing bank facilities.
TGP manufactures and distributes pipe supports and hangers to the power generation, commercial and industrial markets in North America. The business operates from three sites on the east coast of America, one in Canada and four sales and distribution depots across America.
Hill & Smith said the combination of TPG's business together with Hill & Smith's existing engineered pipe supports businesses in the UK, Thailand, China and India will create "a global leading supplier".
The acquisition is expected to be earnings enhancing in the current financial year.
David Lynch, the current president, and shareholder in TPG, will remain with the business along with other senior executive personnel.
Derek Muir, chief executive of Hill & Smith, said "By acquiring TPG, we are taking a significant strategic step forward in creating one of the world's leading pipe supports businesses. As well as making us a significant player in the North American market, TPG gives us an established presence in the highly regulated nuclear power industry both in the US and globally.
"We estimate that there are 189 nuclear plants, either under construction or planned worldwide, and this is therefore an opportunity for the group to grow in a highly attractive market."
The deal is expected to complete next Wednesday (16 March 2011).
