Listed manufacturer completes acquisition
Published on Friday, 22 February 2019
Solihull-based manufacturing group Hill & Smith Holdings has snapped up a business from LDC and private shareholders for more than £20m.
The listed business has completed the acquisition of ATG Access for a cash consideration of £22.5m.
Headquartered in Haydock, Merseyside, ATG exports to more than 30 countries and specialises in the development, manufacture, and installation of hostile vehicle mitigation perimeter security products including bollards (automated, static, impact and non-impact tested), road blockers, barriers and gates.
In the unaudited 12 months to 31 October 2018, ATG recorded turnover of £21.1m, adjusted EBITDA of £2.5m, and had net operating assets, on a debt and cash free basis of £600,000.
Derek Muir, Hill & Smith's group chief executive, said: "ATG provides high security and traffic management solutions and is the UK's leading manufacturer of bollards, road blockers and vehicle barrier systems.
"The acquisition provides the group with a strong platform to introduce new products and new geographies, thereby accelerating the expansion of both our existing UK and international roads businesses. We are excited to welcome ATG and its employees to the group."
The transaction was led by LDC Manchester senior director Ged Gould and investment director John Clarke.
Gavin Hepburn, managing director of ATG Access, added: "This is the next step in our growth journey and will bring exciting new opportunities to our people and our customers.
"LDC has been a hugely supportive and strategic partner, helping the group unlock its potential in new overseas markets and supporting our continued product development story.
"Becoming part of a global group like Hill & Smith will support our business continue to grow in overseas markets around the world."
Ged Gould, senior director at LDC in the North West, said: "The team at ATG has successfully grown the business at home and aboard, and continue to demonstrate the global demand for a quality British engineered product. We wish them every success as part of Hill & Smith."
LDC and ATG Access were advised by KPMG corporate finance and DLA Piper.
Hill & Smith has also announced that it has amended and extended its principal debt facility, extending the term to January 2024 and increasing the tenor by £50m to about £280m.