Listed manufacturer announces multi-million-pound acquisition

Doncaster-based Polypipe, a manufacturer of plastic piping and ventilation systems, has acquired a surface water management firm for up to £16.5m.

The listed firm has snapped up Warrington-based Permavoid, a specialist designer and supplier of surface water management solutions in commercial, residential and sports pitch applications.

The acquisition is based upon an initial cash consideration of £4m on a debt and cash free, normalised working capital basis. There will then be a further deferred consideration of up to £12.5m depending on the EBITDA performance of Permavoid in the two years to 30 September 2020.

Permavoid has provided solutions for many large urban water management projects throughout Europe including the redevelopment of Orlysquare in Amsterdam, phase 1 of the Maankwartier Heerlen development in Holland, and the recent redevelopment of Liverpool Football Club’s Anfield stadium.

In an announcement this morning, Polypipe said Permavoid’s products were uniquely placed to deal with urban water management challenges which are increasing due to the impacts of climate change and urbanisation. Polypipe currently manufactures and sells Permavoid’s products under exclusive licence for the UK and Irish markets.

Key applications for the Permavoid range of products include sustainable urban drainage systems, green infrastructure, Bluegreen roofs, podium decks and sports surface applications. Polypipe’s  said it would enhance its existing market leading water management solutions product ranges.

For the year to 30 September 2018 Permavoid is expected to record revenue of £3.8m and adjusted EBITDA of £500,000. The acquisition is expected to be earnings enhancing in its first full year after completion.

 Martin Payne, Chief Executive Officer of Polypipe, said: “The acquisition of Permavoid is a small but important step towards delivering on our strategic goals. The acquisition brings new intellectual property into the Group with exciting opportunities for further product integration and innovation, allowing Polypipe to enhance its market leading water management and attenuation solutions in the UK, as well as provide opportunities to leverage those market leading solutions in Europe and other markets.”

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