Polypipe agrees £300m refinancing to fund acquisition
POLYPIPE has agreed a £300m refinancing package with four banks that will be used to fund a major acquisition and provide headroom for the listed company.
The Doncaster piping manufacturer has been backed by its banking partners – Barclays, Lloyds Bank Commercial Banking, Royal Bank of Scotland and Santander – which have each committed £75m for a five-year revolving credit facility.
Polypipe announced the £145m acquisition of Welsh ventilation systems manufacturer Nuaire from private equity firm Electra Partners earlier this month.
Peter Shepherd, Polypipe’s chief financial officer, said: “The acquisition of Nuaire, which is one of the leading providers for the UK’s new build market, significantly bolsters our capability in a sector which is experiencing significant levels of growth.
“The funding also strengthens our relationship with our banking partners and ensures we have headroom in place to capitalise on opportunities presented by the construction sector.”
A spokesperson for the banking syndicate said: “Having supported the business through its return to the stock market, we are confident of its continued success in its next stage of expansion.”
Polypipe employs more than 2,000 people at 16 sites across the UK, Europe and Middle East. Its share price has risen by one-quarter in the last month, adding £130m to the company’s value which stands at £670m. Polypipe was valued at £490m when it floated in April 2014.
Anna Robson and Chris Lister from DLA Piper’s Yorkshire team acted for the banks on the transaction.
