Hill & Smith proposes £62m sale of France Galva

Infrastructure and transport engineering company Hill & Smith announced the proposed disposal of its French galvanising and steel lighting column operations, France Galva, for a net equity price of €72.6m (£61.51m) on Monday.

The FTSE 250 company said the business would be sold to a consortium of ZINQ France and Sofigalva.

It said the proposed disposal was expected to be immediately enhancing to the group's growth profile and operating profit margin.

French Works Council consultations and employee-related information processes would be required for the disposal, which would also be conditional on approval by Hill & Smith shareholders.

Subject to the receipt of “satisfactory” notifications and approvals, and assuming Hill & Smith decides to further consider the proposed disposal, completion and the receipt of proceeds was expected in the fourth quarter of 2022.

“The proposed disposal of France Galva is in line with the group's strategy of focussing our capital into higher growth markets,” said executive chair Alan Giddins.

“While galvanising continues to be an important part of our long-term plans, we see the UK and US as offering better growth opportunities.

“The completion of the proposed disposal would provide the group with additional financial firepower to support our organic and inorganic growth ambitions and would serve the best interests of our shareholders.”

At 0821 BST, shares in Hill & Smith Holdings were down 1.95% at 1,304p.

Reporting by Josh White at Sharecast.com.