LONDON: Polypipe Group plc, a leading provider of sustainable water and climate management solutions for the built environment, today announced the acquisition of the Alderburgh Group of companies for a total cash consideration of £14 million on a cash and debt free, normalised working capital basis.

Alderburgh is 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.

Commenting on the acquisition, Martin Payne, Polypipe Chief Executive Officer, said: “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 Commercial and Infrastructure Systems segment, where we will focus the capabilities and synergies of the combined group to drive growth. We are delighted to welcome Alderburgh’s management and employees to Polypipe. 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.”

The acquisition is in line with Polypipe’s strategy of broadening its market reach in water and climate management solutions, providing a “one stop shop” for our customers, and exploiting the key growth drivers of legislative tailwinds and legacy material substitution.

Furthermore, it provides exposure to the emerging high-growth supply and fit market, which Polypipe can leverage further.

Alderburgh is well-positioned to capitalise on these growth drivers given its range of differentiated, value-adding product and service offering that is complementary to Polypipe’s existing capabilities and will enhance Polypipe’s market-leading positions in the water and climate management spaces.

Polypipe’s management expects that acquiring Alderburgh will enable both companies to leverage their respective technical, selling and distribution capabilities and expertise to accelerate growth. There are opportunities for both cost and revenue synergies, including, but not limited to, a broader combined product offering and raw material savings.

It is anticipated that the operational management of Alderburgh will remain with the combined business.

The total consideration of £14m million on a cash and debt free, normalised working capital basis comprises the entire issued share capital of Alderburgh Ltd., Alderburgh Ireland Ltd., Solutek Environmental Ltd. and Environmental Sustainable Solutions Ltd. from Peter Davidson and others. The transaction will be funded by a combination of existing cash from the balance sheet and drawdown from existing debt facilities, with proceeds paid on completion.

The Company expects the acquisition to be earnings accretive in the first full year of ownership, delivering an attractive return on investment in excess of its cost of capital.