Polypipe’s £14m acquisition boosts ‘one-stop shop’ strategy

Polypipe has furthered its strategy to become a “one-stop shop” for its customers with the acquisition of a North West group for £14m.

The Doncaster-based manufacturer, which makes plastic piping and ventilation systems, has bought the Alderburgh Group.

Polypipe said its purchase was a “good strategic and cultural fit” for its operations, broadening its Water Management Systems offer.

Alderburgh, which is based in Rochdale, is a building protection specialist, focused on structural waterproofing and stormwater management.

Polypipe believes Alderburgh’s Solutek specialist installation service will give it access to the high-growth supply and fit market for assemble on site systems. To date, Polypipe has competed mostly in the supply-only part of the market.

Martin Payne, Polypipe’s chief executive, said: “The acquisition of Alderburgh is another step forward in the group’s stated strategy of filling product gaps and adjacencies, expanding our platform and market reach in the UK, and providing a “one stop shop” for customers.

“Like other parts of our business, the Water Management Systems market is being positively impacted by legislative change, and this acquisition gives Polypipe further exposure to this growing segment of the market.”

Alderburgh has a 68,000 sq ft manufacturing facility in Rochdale and employs 100 people. It is forecasting revenue of £17m and adjusted EBITDA of £2.1m in the year to September.

Following the acquisition it is anticipated that the operational management of Alderburgh will remain with the combined business.

The transaction will be funded by a combination of existing cash from the balance sheet and drawdown from existing debt facilities, with proceeds paid on completion.

The corporate team at Mills & Reeve advised the shareholders of Alderburgh Group.