Manufacturer Hill & Smith has taken over a Swedish production firm in a £9.8 million deal.
Wolverhampton-based Hill & Smith (HILS) has agreed the deal for ATA, which makes road safety barriers and distributes road signage.
Chief executive Derek Muir said the acquisition would mean an expansion into a strong market.
He said: “ATA provides Hill & Smith with an exciting opportunity to enter the Swedish infrastructure market and a platform for future growth across Scandinavia.
“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 paid for the deal on a debt free cash free basis from its bank facilities.
Mr Muir said the Stockholm-based firm’s temporary road safety barrier rental model is similar to that of Hill & Smith’s “Varioguard” product in the UK and offers further opportunity to increase its stake in the road maintenance market.
ATA turned over £13 million in the last financial year, and had gross assets of more than £10.5 million.
The acquisition is expected to be earnings enhancing for 2011 and in a statement the Hill & Smith board was it was confident in the prospects of the business thereafter.
