Windows manufacturer sold for £5.2m
EPWIN, the AIM-listed building products group which has a manufacturing base in Cheshire, has boosted its presence in the windows sector with the acquisition of a North Wales company.
It is paying £5.2m for Wrexham-based wood plastic manufacturer Vannplastic as 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 of Epwin 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.
Epwin was listed in July 2014 by Manchester-based investment bank Zeus Capital. It merged with Cheshire-based entrepreneur Brian Kennedy’s Latium Group in 2012 and has a manufacturing base in Macclesfield.
Epwin was advised by Alistair Cree, corporate partner at Eversheds in Manchester.
