The management team will stay with the business. A further cash consideration of up to £5.7m is payable conditional on Prolectric’s achievement of financial performance targets in the 12 months post-acquisition.
Prolectric, located in Clevedon, North Somerset, is a UK market leader in off-grid solar energy solutions. It offers a range of remotely monitored lighting and security products, either for rental or sale, which are field proven in rail, road and other niche infrastructure applications. The technology also enables customers to measure the reduction in CO2 emissions versus diesel powered alternatives. The business 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.
The expected underlying operating profit of Prolectric for the year to March 2021 is c£1.4 million with a margin above the current group average. The net operating assets on a debt and cash free basis are £3.7m. The acquisition is expected to be earnings enhancing to the Group in 2021.
Paul Simmons, Hill & Smith’s Chief Executive, said: “Prolectric is a UK market leader in temporary solar lighting and operates in a market with excellent long term growth potential, driven by the transition from fossil fuels towards renewable energies.
“Hill & Smith has significant experience of the markets which Prolectric’s customers operate in, and this, alongside Prolectric’s innovative product range will further enhance the business’s growth. We are delighted to be adding a deep understanding of solar technology to the Group’s capabilities and see this as a clear fit. We are excited to welcome Prolectric and its employees to the Group.”