Hills sold on for a quid

The deal, which marks the end to 41 years of independence for Hills, was the result of heavy losses on half a dozen school private finance initiative (PFI) contracts in Scotland and northern England.

Hills E&M has an annual turnover of £45m and employs more than 200 people. Its projects have included Manchester’s Civil Justice Centre and fit-out of the Swiss Re tower.

SEC said the acquisition expands their number of branches from 57 to 64 and gives them a strong presence in the retail sector where a lot of Hills work has traditionally been.

SEC employs 4,000 people and, apart from M&E work, operates in street lighting, data and telecoms and also renewables. The firm is owned by Scottish and Southern Energy Group and has a turnover of around £350m.

While Hills posted a loss of £848,900 on turnover of £70.3m in 2005, it turned itself around to a profit of £306,000 in 2006. But since then losses on schools PFI have meant a downward financial spiral, according to the firm.

David Hill, a director and son of the founder, said he preferred to sell to another similar firm rather than a capital fund. He also said he was now looking to set up a training company.