Hill & Smith said that Prolectric Services benefits from the ongoing transition from fossil fuels to a zero-carbon economy
() said it has completed the acquisition of off-grid solar energy solutions provider Prolectric Services.
The sustainable infrastructure and transport solutions firm said the initial cash consideration is £12.5mln, on a debt- and cash-free basis, while further instalments of up to £5.7mln will be paid based on financial performance targets in the 12 months post-acquisition.
The total consideration will be funded from the group’s existing banking facilities.
The acquisition is expected to be earnings enhancing as early as this year.
Hill & Smith said that Prolectric Services benefits from the ongoing transition from fossil fuels to a zero-carbon economy and the need to reduce noise pollution, driven by government legislation and customer demands.
Its expected underlying operating profit for the year to March 2021 is £1.4mln with a margin above the current group average and net operating assets of £3.7mln.
Shares rose 2% to 1,286p on Tuesday morning.
Read More: Hill & Smith Holdings PLC acquires Prolectric Services for up to £18mln