In a move aimed at capturing a larger share of the growing UK housing market and benefit from legislation targeted at reducing the country’s carbon emissions, Polypipe (Doncaster / UK; www.polypipe.com) in early August announced that it has signed an agreement to acquire UK ventilation solutions provider Nuaire (Caerphilly, Wales / UK; www.nuaire.co.uk). The GBP 145m (almost EUR 205m) deal is expected to be wrapped up by the end of August. Sellers are private equity group Electra Partners (London / UK; www.electrapartners.com) and other unnamed Nuaire shareholders. Senior Nuaire management is expected to remain with the combined business following the closure of the purchase.

Nuaire, which will operate as an independent division within Polypipe, “expands considerably our product platform and market reach within the growing ventilation sector,” said Polypipe CEO David Hall. The purchase will significantly broaden the pipe producer’s product offering in this particular sector, especially in commercial ventilation. In October last year, the group had already acquired the ventilation business of Ferrob (see Plasteurope.com of 01.04.2015). The acquisition is also in line with Polypipe’s strategy of expanding in the area of carbon-efficient solutions.

The two companies’ market positions are said to be highly complementary, with little product overlap. There are also many opportunities for synergies, Polypipe said, pointing to broader product offers in the controls, ducting and accessories businesses. Nuaire generated GBP 63.5m (about EUR 90m) in sales in the 12 months ending June 2015, a year-on-year rise of 18.8%. EBITDA came to GBP 12.8m (EUR 18m), up 29.4%. Revenue growth has been driven mostly by tightening building regulations and the positive outlook for the UK construction industry. According to a recent survey carried out by the British Plastics Federation (BPF, London / UK; www.bpf.co.uk), new housing starts are in the process of recovering to pre-2008 levels (see Plasteurope.com of 28.07.2015).

Nuaire is considered to be a leading designer, manufacturer and distributor of ventilation systems in the UK, where its customer base exceeds 5,000, consisting mostly of contractors and building consultants. The company has about 450 employees and is split into three units. The commercial segment, which accounts for about 56% of group revenue, includes ventilation systems and energy-efficient solutions for both the private and public sectors in the UK. Nuaire’s residential segment makes up about 28% of revenues and also caters to the country’s public and private sectors, including local authorities and self-builders. The remaining 16% in revenues are generated by the group’s international segment, which includes high-temperature axial fans and caters mostly to customers in the Middle East and mainland Europe.