POLYPIPE
IMI snaps up PVC pipe producer / Sales of GBP 273m / Seven European factories
UK plastic pipe manufacturer Polypipe plc (Edlington, GB-Doncaster DN12 1ES) has agreed a GBP 337m cash takeover by the IMI Engineering Group. Birmingham-based IMI has no representation in the plastic pipes market but will bolt Polypipe onto its copper pipe and tubing operations, with the aim of developing sales in the markets of mainland and eastern Europe.
Formed in 1980 by Kevin McDonald, who previously ran the Hepworth pipe business, Polypipe has carved itself a profitable niche in the UK´s cut-throat plastic pipe market. It has additional pipe and tubing interests in Germany, Poland and France. Most of Polypipe´s processing activities are focused around PVC pipes and fittings, although it also manufactures in ABS, PP and polybutylene. Other activities include PVC window profiles, garden furniture and kitchen and bathroom components, such as toilet seats.
Last year Polypipe made profits of GBP 34.6m, on sales of GBP 273m, of which 60 percent was accounted for by pipes and fittings. Sales are mainly to builders merchants rather than DIY superstores. When Polypipe, which now has more than 3,000 employees, came to the UK stock market in 1985, it was valued at just GBP 12m.
IMI, which also makes hydraulic controls, drinks dispensers and energy controls, such as valves for radiators, recorded profits last year of GBP 167m on sales of GBP 1,400m. Commenting on the takeover, IMI chairman Sir Eric Pountain said the acquisition will be a major step in the expansion of IMI´s Hydronic Controls business. He added: “Polypipe´s market-leading position, strong brand name and plastics capability make it an excellent addition to our wide range of hydronic and temperature controls and other plumbing and heating products.”
The Polypipe processing factories outside of the UK include Janoplast, Sud Ouest Plastiques, Meridionale des Plastiques and Valtech in France, gabo Systemtechnik in Germany and the Polish firm Polypipe Poland, based in Wroclaw.
READER SERVICE: Report and Financial Statements 1998 of Polypipe plc: PIE-No. 43683.
Formed in 1980 by Kevin McDonald, who previously ran the Hepworth pipe business, Polypipe has carved itself a profitable niche in the UK´s cut-throat plastic pipe market. It has additional pipe and tubing interests in Germany, Poland and France. Most of Polypipe´s processing activities are focused around PVC pipes and fittings, although it also manufactures in ABS, PP and polybutylene. Other activities include PVC window profiles, garden furniture and kitchen and bathroom components, such as toilet seats.
Last year Polypipe made profits of GBP 34.6m, on sales of GBP 273m, of which 60 percent was accounted for by pipes and fittings. Sales are mainly to builders merchants rather than DIY superstores. When Polypipe, which now has more than 3,000 employees, came to the UK stock market in 1985, it was valued at just GBP 12m.
IMI, which also makes hydraulic controls, drinks dispensers and energy controls, such as valves for radiators, recorded profits last year of GBP 167m on sales of GBP 1,400m. Commenting on the takeover, IMI chairman Sir Eric Pountain said the acquisition will be a major step in the expansion of IMI´s Hydronic Controls business. He added: “Polypipe´s market-leading position, strong brand name and plastics capability make it an excellent addition to our wide range of hydronic and temperature controls and other plumbing and heating products.”
The Polypipe processing factories outside of the UK include Janoplast, Sud Ouest Plastiques, Meridionale des Plastiques and Valtech in France, gabo Systemtechnik in Germany and the Polish firm Polypipe Poland, based in Wroclaw.
READER SERVICE: Report and Financial Statements 1998 of Polypipe plc: PIE-No. 43683.
30.04.1999 Plasteurope.com [18067]
Published on 30.04.1999