The move is intended to enable a strategic expansion into the Scandinavian infrastructure market. ATA is a family-owned distributor of road safety barriers and manufacturer and distributor of聽 road signs. The purchase is on a debt-free cash free basis, to be financed from the group鈥檚 existing bank facilities.
鈥淎TA provides Hill & Smith with an exciting opportunity to enter the Swedish infrastructure market and a platform for future growth across Scandinavia,鈥� said Hill & Smith Holdings chief executive Derek Muir. 鈥淥ur 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.聽 The acquisition further broadens our international footprint which is an important element in our overall strategy.鈥�
Hill & Smith鈥檚 group's operations are organised into three business segments - infrastructure products, galvanizing services and building and construction products.
ATA鈥檚 product portfolio covers permanent road safety barriers, a temporary road safety barrier rental fleet, crash cushions and road signs, including variable message signing.聽 Its temporary road safety barrier rental model聽 is similar to聽 that of Hill & Smith鈥檚 Varioguard product in the UK. Hill & Smith said that it offers聽 further opportunity to聽 increase its representation in聽 the road maintenance market, as well as providing additional capacity for its existing rental fleet. ATA operates from four depot locations in Sweden and has headquarters in Stockholm.
In 1980, ATA was the first major service contractor to supply the Swedish Road Administration and has used its knowledge of local road regulations for services including the planning of road traffic signage.
Hill & Smith said that ATA鈥檚 acquisition also provides the group with potential for expansion in Sweden and into other parts of Scandinavia, consistent with its strategy for international market and earnings growth.
The last audited financial statements for ATA聽 for the year ended 31 December 2010聽 disclosed total revenue of SEK 133.1m (拢13m). The acquisition is expected to be earnings enhancing for 2011 and the Hill & Smith鈥檚 board said that it is confident in the prospects of the business thereafter.
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