Telford metalworking firm bought in £10.5m deal

An agreement has been signed which will see W Corbett & Co. (Galvanizing) Limited – better known as Corbetts the Galvanizers – bought out by Hill & Smith Holdings.

The company is the UK's biggest independent galvanizers in the country.

The process sees a protective zinc applied to steel or iron to protect it from rusting and damage.

Corbetts' vans are a common sight on the roads in its home town of Telford, where it employs around 130 on its six-acre site on the Halesfield Industrial Estate.

However, before the deal can be completed, it is likely to face a probe from the Competition and Markets Authority (CMA) because of the combined size of the two companies if the merger pressed ahead.

Publicly listed Hill & Smith is an international company providing infrastructure products and galvanizing services. Its turnover is more than £450 million a year.

Its chief executive Derek Muir said: "The proposed acquisition will enable Hill & Smith to continue its growth momentum in an important part of our UK business, improving service to our existing customers and helping us to target underserved markets in the UK."

Founded by Samuel Corbett in 1860, Corbetts has an established customer base and operates two galvanizing baths in Telford. It mainly serves the UK market.

Last year, Corbetts achieved sales of £9.6 million, underlying profits of £1.5 million, and held assets worth £4.1 million.

The acquisition is expected to be funded from Hill & Smith's existing credit facilities.

The CMA is now expected to begin a public consultation and review of the businesses.