Polypipe secures major acquisition as trading recovery continues

Polypipe's trading update will be studied by City analysts.

Polypipe Group has announced its acquisition of Nu-Heat (Holdings), a supplier of sustainable underfloor heating services, air and ground source heat pumps, and other renewable heating systems, for a total consideration of £27 million on a cash-free, debt-free basis.

Polypipe said Nu-Heat was complementary to the group's existing portfolio of brands and the company had a solid track record of growth, profitability and good cash flow generation.

Polypipe Group is the largest manufacturer in the UK, and among the 10 largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue. It is also a major designer and manufacturer of energy efficient ventilation systems in the UK.

Commenting on the acquisition, Martin Payne, Polypipe Chief Executive Officer, said: "I am delighted to announce the acquisition of Nu-Heat, which aligns with our key growth drivers, including our focus on low carbon heating and solutions for the environmental challenges facing the built environment.

"This acquisition will enable us to further develop our underfloor heating capabilities, and to develop new and exciting ways to integrate underfloor heating, heat pumps, and air-based climate management systems. The Nu-Heat team have fantastic technical and application knowledge, and I would like to welcome them to the Polypipe Group."

David Roberts, Managing Director of Nu-Heat, said: "We are delighted to be joining Polypipe, with which we share a similar culture and values. We look forward to being better positioned to deliver more sustainable solutions to customers and greater opportunities for our people as part of the Polypipe Group."

In a statement, Polypipe added: "Further to the update announced on December 14 2020, the group confirms that trading continued to recover throughout the end of the month, with underlying operating profit for the year ended 31 December 2020 slightly ahead of the previous guidance of c.£40 million and with this momentum continuing into the new year without any material impact from the third national lockdown.

"We have also had continued good delivery of cashflow, with net debt at c.£30 million at the end of the year."