(Alliance News) - FTSE 250-listed pipe manufacturer Polypipe PLC said Tuesday it acquired the building protection systems firm Alderburgh Group for GBP14 million cash.
"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," Polypipe Chief Executive Officer Martin Payne said.
Alderburgh produces plastic injection moulded stormwater tanks, structural waterproofing as well as gas barrier and ventilation materials.
"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," Payne added.
For the year ended September, Alderburgh is expected to generated GBP2.1 adjusted earnings before interest, taxes, depreciation & amortisation on revenue of GBP17.0 million.
In 2018, Polypipe generated GBP58.2 million pretax profit on revenue of GBP433.2 million. No Ebitda figures were provided.
"With our solid organic growth drivers, successful acquisitions track record, and a continued healthy pipeline of bolt on acquisitions, the board believes we have a clear, deliverable strategy that will continue to create excellent shareholder value."
Shares in Polypipe were 0.9% higher at 409.40 pence in London on Tuesday.
By Ahren Lester; ahrenlester@alliancenews.com
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