National Presto Industries International Inc. (NPK) announced it will acquire Grassform Plant Hire Limited, a UK leader in ground protection and temporary roadway solutions, for an all‑cash consideration of £35.2 million (about $46.4 million). The transaction is expected to close in the first quarter of 2026 and will be funded primarily with cash on hand and approximately $10 million of new borrowing under NPK’s U.S. credit facility.
Grassform, headquartered in Ingatestone, England, operates a fleet of more than 20,000 composite mats and generated £15 million ($19 million) in revenue with £6 million ($8 million) EBITDA in the twelve months ended October 31 2025. The acquisition adds a highly tenured team and expands NPK’s UK rental and service footprint, positioning the company to capture growth in the UK plant hire market, which is projected to grow at a modest 2 % annually amid ongoing infrastructure investment.
NPK’s CEO Matthew Lanigan said the deal “strengthens our UK operations and complements our existing service portfolio, allowing us to serve a broader customer base while maintaining the high margins that have driven our recent profitability.” Lanigan also noted that the transaction will keep NPK’s debt‑to‑equity ratio low, at 0.06, and that the company remains well‑positioned to continue disciplined capital allocation.
The purchase price includes a potential additional consideration that will be paid if Grassform’s trailing‑twelve‑month performance improves through its fiscal year‑end of February 28 2026. While the exact amount is not disclosed, the clause signals NPK’s confidence in Grassform’s growth trajectory and provides upside for the transaction.
Analysts have highlighted that the acquisition aligns with NPK’s strategy to scale its high‑return rental business through geographic expansion. The deal is expected to contribute an additional £6 million ($8 million) of EBITDA to NPK’s consolidated results, boosting the company’s overall EBITDA, which stood at $64.95 million for the last twelve months prior to the acquisition.
The UK plant hire market, valued at approximately £3.56 billion in 2025, is expected to grow slowly as economic headwinds temper construction demand. However, large infrastructure projects such as HS2 continue to support demand for temporary roadway solutions, providing a tailwind for Grassform’s core services.
With the acquisition, NPK will broaden its service coverage across the UK, adding Grassform’s established customer relationships and operational expertise. The transaction is expected to enhance NPK’s competitive positioning in a market where scale and service quality are key differentiators.
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