Polypipe – 408.6p

1 October 2019 – acquisition

Polypipe, a leading provider of sustainable water and climate management solutions for the built environment, has announced the acquisition of the Alderburgh Group of companies.  This is a leading designer, manufacturer and installer of plastic injection moulded stormwater attenuation tanks, structural waterproofing and geocellular membranes, gas barrier and ventilation materials.  Alderburgh supplies the UK, Irish and Scandinavian markets.  The total cash consideration is £14m on a cash and debt free, normalised working capital basis.  The acquisition is expected to be earnings accretive in the first full year of ownership, delivering an attractive return on investment in excess of its cost of capital.  This should drive further value and we see no reason to change our BUY rating.

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