Solihull’s Epwin Group snaps up Welsh plastics firm in £5.2m deal
SOLIHULL-based windows manufacturer Epwin Group has strengthened its presence in the market with the £5.2m acquisition of a wood plastic manufacturer.
Epwin, which has operations across the West Midlands, said the acquisition of Wrexham-based Vannplastic was part of a strategy to broaden its range of low maintenance building products.
Vannplastic, which trades as Ecodek and was founded in 2002, is a manufacturer of Wood Plastic Composite (WPC), the primary application being a hardwood substitute for balconies and outdoor decking. Ecodek is the leading British supplier of WPC products which are manufactured from recovered hardwood fibres and high density recycled polyethylene. As a consequence, all products are over 90% recycled and 100% recyclable.
The business has a broad customer base from new build housing, social housing and trade. It has developed a significant amount of know-how in the formulation and use of WPC materials and plans to expand the use of these materials in additional applications.
Epwin said Ecodek’s product technology had the potential for applications in other low maintenance building products and there was a high level of technical expertise within the business which, by working with Epwin’s own technical resource, would develop new applications for the materials technology, as well as continue Ecodek’s growth.
Jon Bednall, Chief Executive Officer, Epwin Group said: “Ecodek adds to the group’s range of low maintenance building products and brings exciting new materials technologies into the group as well as real developmental expertise. The acquisition represents an important first step in the development of the group and is expected to enhance earnings from 2016.”
Following acquisition, Ecodek will operate as part of Epwin’s Extrusion business with the management team who formed the business continuing to oversee its growth and development.
For the year ended December 31, 2014, Ecodek had turnover of £4.1m, producing an operating profit of £0.6m. Current year performance is expected to deliver EBITDA of circa £1m.
Epwin said the acquisition was expected to be earnings enhancing in the financial year to December 31, 2016.
