Business
Acquisition of Alderburgh group of companies
Acquisition of Alderburgh group of companies.
About this update from Genuit Group Plc
[{"type":"text","content":"\n \nRNS Number : 2442O Polypipe Group PLC 01 October 2019 \n\n \n1 October 2019\nPolypipe Group PLC\n \nAcquisition of ALDERBURGH Group of companies\nPolypipe Group plc (\"Polypipe\", the \"Company\" or the \"Group\"), a leading provider of sustainable water and climate management solutions for the built environment, today announces the acquisition of the Alderburgh Group of companies (\"Alderburgh\"), a leading designer, manufacturer and installer of plastic injection moulded stormwater attenuation tanks, structural waterproofing and geocellular membranes, gas barrier and ventilation materials, supplying the UK, Irish and Scandinavian markets, for a total cash consideration of £14 million on a cash and debt free, normalised working capital basis. \n Key highlights\n§ A good strategic and cultural fit, broadening Polypipe's Water Management Systems (WMS) offer, in particular the Versavoid stackable attenuation cell system and Pluvial cube system, complementing Polypipe's Polystorm and Permavoid ready-assembled attenuation systems\n§ A solid track record of growth, profitability and successful cash flow generation\n§ Through its Solutek specialist installation service, provides Polypipe exposure to the high-growth supply and fit market for assemble on site systems, having to date competed mostly in the supply-only part of the market\n§ Versavoid and Pluvial cube are made from recycled plastic, increasing the Group's overall use of recycled materials and reinforcing its ESG credentials\n§ Potential for cost and revenue synergies identified\n§ Well-invested business with state-of-the-art facilities\n§ Expected to be EPS accretive and deliver returns in excess of our cost of capital in the first full financial year of ownership\nCommenting on the acquisition, Martin Payne, Polypipe Chief Executive Officer, said:\n\"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 our 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 will be integrated into Polypipe's Commercia...