Piping manufacturer Polypipe Group buys Manthorpe Group for £52m cash
Source - SMW
Plastic piping manufacturer Polypipe Group announced on Thursday it had acquired Manthorpe Building Products Holdings Limited, together with its associated freehold land and buildings, for a total cash consideration of £52m.
The acquisition, which was on a cash and debt-free, normalised working capital basis, was expected to boost earnings per share and deliver returns in excess of the cost of capital in the first full financial year of ownership.
Polypipe said Manthorpe, a leading designer of extruded plastic and metal products, was a well-invested business with state-of-the-art facilities, which would be integrated into its Residential systems segment.
"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," said Martin Payne, Polypipe Chief Executive Officer.
At 9:34am: (LON:PLP) Polypipe Group Plc share price was +12.9p at 320.7p