Polypipe heats up pipeline with £27m acquisition
South Yorkshire manufacturer, Polypipe Group has purchased Nu-Heat, a leading supplier of sustainable underfloor heating solutions, air and ground source heat pumps, and other renewable heating systems for £27m.
The Doncaster-based business, which won a number of awards at the 2020 Yorkshire Business Masters, believes the firm is complementary to the its existing portfolio of brands and will enable it to further develop its underfloor heating capabilities.
Nu-Heat was established in 1992 and from its base in Devon has delivered revenue and earnings growth, reporting for the twelve months to 31 December 2020 a revenue of £16m and a reported EBITDA of £3.1m.
Martin Payne, chief executive officer at Polypipe, said: “I am delighted to announce the acquisition of Nu-Heat, which aligns with our key growth drivers, including our focus on low carbon heating and solutions for the environmental challenges facing the built environment.”
David Roberts, managing director of Nu-Heat, added: “We are delighted to be joining Polypipe, with which we share a similar culture and values. We look forward to being better positioned to deliver more sustainable solutions to customers and greater opportunities for our people as part of the Polypipe Group.”
The deal which was funded via existing debt facilities, comes as Polypipe reports that trading continued to recover throughout the end of 2020 and that it expects operating profit for the year ended 31 December 2020 to be slightly ahead of the previous guidance of £40m.
Looking ahead the Polypipe states that trading “momentum has continued” into 2021 and that the third national lockdown has had no material impact on business activities. The firm will intends to issue its preliminary full year results on 16 March.