Polypipe buys Permavoid in play for urban water challenges market
Polypipe, one of Europe’s biggest manufacturers of plastic pipe systems, has acquired Permavoid. The smaller company was heavily involved with the recent redevelopment of Liverpool Football Club’s Anfield Stadium, and Polypipe says that it’s “uniquely placed to deal with urban water management challenges” that are becoming more numerous due to the twin trends of urbanisation and climate change. Permavoid has provided solutions in this area for a number of large urban water management projects around Europe.
Polypipe’s share price has edged up over the last 5 days
SOURCE: Yahoo Finance
The deal, which could be worth as much as £16.5 million depending on Permavoid’s performance over the next 24 months, will see Polypipe move into areas where it will supply products that store surface water to alleviate and prevent flooding, and channel the stored water to irrigation systems. Polypipe already manufactures and sells some Permavoid products under an exclusive UK and Ireland license, so the company already understands the market in question.
Polypipe’s CEO, Martin Payne, said: "The acquisition of Permavoid is a small, but important step towards delivering on our strategic goals. [It] brings new intellectual property into the group with exciting opportunities for further product integration and innovation, allowing Polypipe to enhance its market leading water management and attenuation solutions in the UK, as well as provide opportunities to leverage those market leading solutions in Europe and other markets."
Polypipe said that the acquisition is expected to be “earnings enhancing” in the first full year after completion.
Dominion holds Polypipe in its Global Trends Managed Fund.
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