Hill & Smith to buy U.S. fabricator Freeberg in data centre growth push

An announcement from Hill & Smith Holdings ( (GB:HILS) ) is now available.

Hill & Smith PLC has agreed to acquire 80% of California-based Freeberg Industrial Fabrication Corp., a U.S. designer and manufacturer of custom enclosures and engineered solutions for data centres, power generation and other infrastructure markets, for an initial $36 million in cash. The remaining 20% will be bought later via an earn-out of up to $50 million tied to profitability through 2031, with Freeberg’s CEO Marc Brown remaining in charge.

Freeberg is expanding with a new 160,000 sq. ft. leased factory in Arizona, expected to be operational in the second half of 2026 and requiring up to $12 million of capital expenditure through 2027 to meet surging demand, particularly from data centres. Hill & Smith expects the acquisition, funded from existing borrowing facilities and subject to U.S. regulatory approval, to complete in the second quarter and be earnings enhancing in 2026, while strengthening the group’s exposure to high-growth U.S. engineered solutions markets and providing a platform for further inorganic expansion.

The most recent analyst rating on (GB:HILS) stock is a Buy with a £2633.00 price target. To see the full list of analyst forecasts on Hill & Smith Holdings stock, see the GB:HILS Stock Forecast page.

Spark’s Take on GB:HILS Stock

According to Spark, TipRanks’ AI Analyst, GB:HILS is a Outperform.

Hill & Smith Holdings scores well due to its strong financial performance and positive corporate actions, such as the share buyback program. While technical indicators show bullish momentum, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.

To see Spark’s full report on GB:HILS stock, click here.

More about Hill & Smith Holdings

Hill & Smith PLC is a UK-listed provider of solutions that enhance the resilience of critical infrastructure and the built environment, employing around 4,500 people across the UK, U.S. and India. Its operations span U.S. and UK & India Engineered Solutions, supplying composite and steel products for energy, data centres, transport and industrial construction, alongside galvanizing services that extend the life of steel structures for infrastructure markets.

Average Trading Volume: 162,975

Technical Sentiment Signal: Buy

Current Market Cap: £1.77B

For detailed information about HILS stock, go to TipRanks’ Stock Analysis page.