Hill & Smith Holdings PLC (LSE:HILS) has announced the US$6.25 million (£5 million) acquisition of structural steel product supplier Capital Steel from shareholder Robert Hickman.
Hickman, who heads up the New Jersey-based business, will remain in his role at Capital Steel.
A further cash consideration of US$1.2 million is payable based on financial performance targets.
"Capital Steel operates in one of our most attractive end markets,” Hill & Smith chief executive Alan Giddins said in a statement.
“The acquisition is in line with our strategy of acquiring businesses with strong long-term growth potential.”
FTSE 250-listed construction supplier Hill & Smith has acquired four firms over the past year, with the latest set to expand its “geographical customer base, generate material cross selling opportunities and provide additional manufacturing capacity and capability”.
Capital Steel reported revenue of US$8.1 million for the year to August, Hill & Smith added, alongside adjusted pre-tax earnings of US$1.0 million.
“The acquisition is expected to be earnings enhancing to the group in 2024,” Hill & Smith said, and was carried out on a debt free basis.
Shares climbed 1.1% to 1,848.30p.