Doncaster-based plastic piping and ventilation systems firm Polypipe Group said on Wednesday it agreed to acquire Gloucestire-based London Topco Limited (ADEY) from mid-market private equity firm LDC and other existing ADEY shareholders for £210 million in cash.
Polypipe said it will fund the acquisition partly by selling new shares in the firm equal to 8.2% of its issued share capital.
“ADEY is the UK’s leading provider of magnetic filters, chemicals and related products, which protect against magnetite and other performance issues in water-based heating systems and improve energy efficiency, operating in predominantly residential end markets,” said Polypipe.
“The consideration will be funded via a combination of the group’s existing debt facilities and the proceeds of an equity placing, representing c.8.2% of Polypipe’s issued share capital.”
Polypipe CEO Martin Payne said: “We are delighted to announce the acquisition of ADEY.
“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.”
ADEY CEO Matthew Webber said: “We are excited to be joining Polypipe and by the growth opportunities ahead.
“The companies share a similar culture and philosophy, focused on delivering sustainable water and climate management solutions.
“The combined business will allow us better to serve our customers, which will continue to be the foundation for our future success.”