Listed manufacturing group Hill & Smith is to acquire Shropshire-based rival W Corbett & Co. in a £10.5 million deal.
Solihull-based Hill & Smith, which designs, manufactures and supplies infrastructure products and galvanizing services to global markets, said the combination of W Corbett with its existing UK galvanizing businesses, principally Joseph Ash, would provide additional customer service benefits and expand its domestic coverage.
Founded by Samuel Corbett in 1860, W Corbett operates two galvanizing baths from a modern facility in Telford and also provides galvanizing services to the wider UK market.
In 2014, it posted sales of £9.6 million and underlying EBITDA of £1.5 million.
Hill & Smith said the proposed acquisition was expected to be earnings enhancing for 2015 and its board was confident in the prospects of the business thereafter.
Due to the combined size of the two companies, the acquisition is conditional on the approval of the Competition & Markets Authority which is expected to commence its public consultation and review process shortly.
Chief executive Derek Muir said: "The proposed acquisition will enable Hill & Smith to continue its growth momentum in an important part of our UK business, improving service to our existing customers and helping us to target underserved markets in the UK."
