25th Oct 2018 09:27
LONDON (Alliance News) - Plastic piping manufacturer Polypipe Group PLC said on Thursday it has acquired UK-based plastic and metal products manufacturer Manthorpe Building Products Holdings Ltd for GBP52 million on a cash and debt free.
The acquisition will be funded from existing cash resources as well as drawdown from existing debt facilities, and is expected to be earnings accretive in the first year of ownership.
For the year to the end of April, Manthorpe Building Products reported earnings before interest, taxes, deprecation and amortisation of GBP6.3 million and revenue of GBP16.4 million.
The acquisition is expected to be a good strategic fit for Polypipe, broadening the group's UK residential offering in the water and climate management sectors, with new and value adding products.
"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," said Chief Executive Officer Martin Payne.
Shares in Polypipe Group were up 3.1% at 317.40 pence on Thursday.
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