Business
Acquisition of Manthorpe Building Products
Acquisition of Manthorpe Building Products.
About this update from Genuit Group Plc
[{"type":"text","content":"\n \nRNS Number : 1162F Polypipe Group PLC 25 October 2018 \n\n25 October 2018\nPolypipe Group PLC\n \nAcquisition of Manthorpe Building Products\nPolypipe Group plc (\"Polypipe\"), a leading manufacturer of plastic piping and ventilation systems for the residential, commercial, civils and infrastructure sectors, today announces the acquisition of Manthorpe Building Products Holdings Limited, (\"Manthorpe\") a leading designer and manufacturer of moulded and extruded plastic and metal products to the UK and Irish residential and RMI markets, together with associated freehold land and buildings, for a total cash consideration of £52 million on a cash and debt free, normalised working capital basis. \n \nKey highlights\n§ Manthorpe is a leading provider of moulded and extruded plastic and metal products in the UK and Ireland, with a solid track record of growth, profitability and successful cash flow generation\n§ Good strategic fit, broadening Polypipe's UK residential offering in the water and climate management sectors, with differentiated, patented value-adding products\n§ Manthorpe and Polypipe have common end users (house developers and RMI) and routes to market (merchants and specialist distributors)\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 the cost of capital in the first full financial year of ownership\n \nCommenting on the acquisition, Martin Payne, Polypipe Chief Executive Officer, said:\n\"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.\"\n \nThe Manthorpe business\nManthorpe is a leading designer and manufacturer of moulded and extruded plastic and metal products to the UK and Irish residential and RMI markets. It sells prod...