Solihull engineering group Hill & Smith Holdings has announced a £27.8 million deal for a pipe supports firm as part of plans to grow sales in the nuclear power market.

Hill & Smith said the deal for US firm The Paterson Group (TPG) would be financed from its existing bank facilities.

The company made the announcement on the same day it posted a slight dip in turnover.

Hill & Smith reported sales of £374.2 million for the calendar year, down from £389.7 million in 2009.

The company’s profitability remained unchanged, with a pre-tax profit of £42.2 million reported.

Speaking of the firm’s latest takeover, Derek Muir, chief executive of Hill & Smith, said the deal opened up to dozens of potential tenders.

He said: “As well as making us a significant player in the North American market, TPG gives us an established presence in the highly regulated nuclear power industry both in the US and globally.

"We estimate that there are 189 nuclear plants, either under construction or planned worldwide, and this is therefore an opportunity for the group to grow in a highly attractive market.”

Meanwhile, Hill & Smith reduced net debt from £87.6 million to £70.6 million last year.