Hill & Smith acquires Prolectric Services for up to GBP18mln

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Hill & Smith Holdings PLC (LON:HILS) said it has completed the acquisition of off-grid solar energy solutions provider Prolectric Services.


The sustainable infrastructure and transport solutions firm said the initial cash consideration is GBP12.5mln, on a debt- and cash-free basis, while further instalments of up to GBP5.7mln will be paid based on financial performance targets in the 12 months post-acquisition.


The total consideration will be funded from the group’s existing banking facilities.


The acquisition is expected to be earnings enhancing as early as this year.


Hill & Smith said that Prolectric Services benefits from the ongoing transition from fossil fuels to a zero-carbon economy and the need to reduce noise pollution, driven by government legislation and customer demands.


Its expected underlying operating profit for the year to March 2021 is GBP1.4mln with a margin above the current group average and net operating assets of GBP3.7mln.


Shares rose 2% to 1,286p on Tuesday morning.

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