The move is intended to enable a strategic expansion into the Scandinavian infrastructure market. ATA is a family-owned distributor of road safety barriers and manufacturer and distributor of road signs. The purchase is on a debt-free cash free basis, to be financed from the group’s existing bank facilities.
“ATA provides Hill & Smith with an exciting opportunity to enter the Swedish infrastructure market and a platform for future growth across Scandinavia,” said Hill & Smith Holdings chief executive Derek Muir. “Our respective product portfolios and areas of expertise are well aligned, and the combination provides scope for future extension of our offering across other international markets. The acquisition further broadens our international footprint which is an important element in our overall strategy.”
Hill & Smith’s group's operations are organised into three business segments - infrastructure products, galvanizing services and building and construction products.
ATA’s product portfolio covers permanent road safety barriers, a temporary road safety barrier rental fleet, crash cushions and road signs, including variable message signing. Its temporary road safety barrier rental model is similar to that of Hill & Smith’s Varioguard product in the UK. Hill & Smith said that it offers further opportunity to increase its representation in the road maintenance market, as well as providing additional capacity for its existing rental fleet. ATA operates from four depot locations in Sweden and has headquarters in Stockholm.
In 1980, ATA was the first major service contractor to supply the Swedish Road Administration and has used its knowledge of local road regulations for services including the planning of road traffic signage.
Hill & Smith said that ATA’s acquisition also provides the group with potential for expansion in Sweden and into other parts of Scandinavia, consistent with its strategy for international market and earnings growth.
The last audited financial statements for ATA for the year ended 31 December 2010 disclosed total revenue of SEK 133.1m (£13m). The acquisition is expected to be earnings enhancing for 2011 and the Hill & Smith’s board said that it is confident in the prospects of the business thereafter.
Got a story? Email news@theconstructionindex.co.uk
