Multi-million-pound acquisition for listed manufacturer
Doncaster-headquartered Polypipe, a manufacturer of plastic piping and ventilation systems, has acquired a Derbyshire buildings firm for £52m.
Manthorpe is a leading provider of moulded and extruded plastic and metal products in the UK and Ireland, with a track record of growth, profitability and successful cash flow generation. Based in Ripley, Derbyshire, the firm employs around 100 people. It reported revenues of £16.4m and adjusted EBITDA of £6.3m for the 12 months ending 30 April 2018.
It is the second acquisition of the year for listed Polypipe. Last month, the listed manufacturer snapped up Warrington-based Permavoid, a specialist designer and supplier of surface water management solutions in commercial, residential and sports pitch applications, for £16.5m.
Polypipe’s management expects that the two companies will be able to leverage their technical, selling and distribution capabilities and expertise to accelerate the combined company’s growth. “There are opportunities for both cost and revenue synergies, including, but not limited to, a broader combined product offering and raw material savings,” said Polypipe.
Martin Payne, Polypipe Chief Executive, said: “The acquisition of Manthorpe Building Products is a perfect fit for us, expanding our product platform and market reach in the UK and Irish residential and RMI markets, which, like other parts of our business, are being positively impacted by legislative change. Manthorpe will be integrated into Polypipe’s Residential Systems segment, where we will leverage the capabilities and synergies of the combined group to drive growth. We are delighted to welcome Manthorpe’s management and employees to Polypipe and look forward to accelerating the strategic development of the enlarged group.”
Polypipe said the acquisition was in line with its strategy of broadening its market reach in water and climate management solutions, providing a “one stop shop” for customers, and exploiting the key growth drivers of legislative tailwinds and legacy material substitution. “Manthorpe is well-positioned to capitalise on these growth drivers given its range of differentiated, specifiable, value-adding product solutions. Its offering is complementary to Polypipe’s existing capabilities and will further Polypipe’s market leading positions in the water and climate management spaces,” added Polypipe.
It is anticipated that the operational management of Manthorpe will remain with the combined business.
Last month, Polypipe opened a £250,000 training facility – Polypipe Professional Development Centre (PDC) – in Kirk Sandall.
