Hill & Smith completes Technocover deal

Manufacturing group Hill & Smith has completed the acquisition of Technocover Limited for £10m on a debt and cash free basis, to be funded from existing banking facilities.

The deal is expected to be earnings-enhancing in the first full financial year following the acquisition.

UK-based Technocover was a subsidiary of Ensor Holdings and specialises in the development, manufacture, installation and maintenance of high security access products for the utilities markets.

In the year to 31 March 2016, it generated turnover of £14.7m, operating profit of £1.5m before Ensor Holdings group charges and had net operating assets, on a debt and cash free basis of £3.7m.

Chief executive Derek Muir said: “Technocover has an excellent reputation for quality and service and will benefit from being part of the group's UK Utilities division."

At 1425 BST, Hill & Smith shares were up 2.7% to 968.50p.