Hill & Smith PLC announced that it has agreed to acquire Freeberg Industrial Fabrication Corp. for an initial cash consideration of $36 million for 80% of the company’s equity, marking an expansion of the infrastructure solutions provider’s presence in the United States. The transaction, which is subject to U.S. regulatory approvals, also includes potential additional payments for the remaining 20% of the business depending on profitability through December 31, 2031, with earn-out consideration capped at $50 million.
Based in Escondido, California, Freeberg Industrial Fabrication designs and manufactures custom enclosures and engineered systems used in data centers, power generation, and other infrastructure markets. The business is currently expanding its operations with the construction of a new 160,000-square-foot leased facility in Arizona, expected to become operational in the second half of 2026. The facility will support assembly of genset packages and other large-scale electro-mechanical systems as the company responds to rising demand, particularly from the data center sector. Post-completion capital expenditures for the new site are expected to reach up to $12 million through 2026 and 2027.
Hill & Smith said the acquisition aligns with its operating company framework and increases exposure to higher-growth priority markets. The company plans to maintain the existing leadership structure, with Freeberg CEO Marc Brown continuing to lead the business following the transaction.
For the 12 months ending December 31, 2025, Freeberg reported unaudited revenue of $31.7 million and adjusted EBIT of $5.3 million. Once integrated, the business is expected to achieve operating margins at least in line with Hill & Smith’s financial framework target of 18%. The acquisition will be funded through the company’s existing borrowing facilities and is expected to complete during the second quarter of 2026. Hill & Smith also expects the transaction to be earnings enhancing in 2026.
Hill & Smith PLC, listed on the London Stock Exchange, provides engineered solutions that enhance the resilience of infrastructure and the built environment. The company operates across three divisions: U.S. Engineered Solutions, UK & India Engineered Solutions, and Galvanizing Services, with approximately 4,500 employees across the U.K., U.S., and India.
KEY QUOTES
“We are pleased to have agreed the acquisition of Freeberg, a fast-growing business which we have followed and admired for some time. The business provides excellent exposure to a number of high growth end markets, including data centres and power generation, and is well aligned to our operating company framework. We are excited about the opportunity Freeberg represents, offering attractive revenue growth potential, above that of our financial framework, as well as strong operating margins and underlying cash generation over the medium term. We also see the potential to use Freeberg as a platform for further inorganic expansion in the US within our US Engineered Solutions division. I would like to welcome Marc and his team to Hill & Smith.”
Rutger Helbing, Chief Executive Officer Of Hill & Smith PLC
