PLP.L Share News (PLP)

(Sharecast News) - Polypipe has agreed to buy ADEY, a provider of magnetic filters and chemicals, from private equity firm LDC and other shareholders for £210m in cash, part of which will be funded through a share placing.
The FTSE 250 piping manufacturer said it will place up to around 18.7m new ordinary shares, or around 8.2% of its issued share capital. The price at which the shares are placed will be determined at the close of the bookbuilding process.

The acquisition will also be funded through existing debt facilities.

The FTSE 250 company said ADEY is one of the UK's leading providers of magnetic filters, chemicals and related products, which protect against magnetite and other performance issues in heating systems, improve energy efficiency and extend boiler life.

The acquisition, which is expected to be double-digit accretive to earnings per share in the first full year of ownership, is a "strong strategic fit", Polypipe said, broadening its UK residential offering in sustainable water and climate management.

Chief executive officer Martin Payne said: "Polypipe's strategy is to grow both organically and through carefully selected value-enhancing acquisitions, with a particular focus on sustainability and sectors within climate and water management. ADEY is a pioneer and market leader in the residential heating protection market, one of the fastest growing segments of the UK construction market, underpinned by a shift towards more energy-efficient heating systems and regulatory tailwinds.

"Like Polypipe, it has a strong track record of innovation and new product development, with the Acquisition strengthening the proposition for our customers and accelerating Polypipe's growth. We welcome ADEY's management and employees and look forward to working with them over the coming years."