Manufacturer of plastic piping systems Polypipe has agreed to acquire ventilation systems manufacturer Nuaire from Electra Partners, for a cash consideration of £145m.
The Acquisition will be financed using a combination of existing cash from the balance sheet and new debt and is expected to complete by the end of August.
The deal broadens Polypipe’s product offering in the high-growth ventilation sector, and particularly the commercial ventilation segment. It also provides further market reach towards end-users through a specification-led business model.
David Hall, Polypipe chief executive, said: “We have long been an admirer of Nuaire and this acquisition provides a perfect fit for us. Nuaire expands considerably our product platform and market reach within the growing ventilation sector, which, like other parts of our business, are being positively impacted by environmental legislative change.
“Nuaire will continue to operate as an independent division, as we leverage the capabilities of the combined group to drive growth, bringing more choice to our broader customer base. We are delighted to welcome Nuaire’s management and staff as we look forward to accelerating the strategic development of the enlarged group.”
Nuaire is a designer, manufacturer and distributor of ventilation systems to the UK commercial, residential and international ventilation markets.
The firm is based in Caerphilly, Wales, from where it serves a diverse customer base of more than 5,000 customers in the UK and internationally.
In the UK, Nuaire’s customers are mostly contractors and building consultants. The company has a team of 57 sales representatives focusing primarily on contractors and building consultants. It has around 450 full-time employees.
Mark Huxtable, chief executive of Nuaire, said: “We are delighted to be joining Polypipe. The companies share many characteristics, including a similar culture and philosophy, and together we will be better placed to tap into the excellent prospects for the sector.”