Bosses of Polypipe, the UK brand leader in plastic piping and sanitary systems, now have a controlling equity stake in the group thanks to backing from the Bank of Scotland.
Under the terms of the refinancing, Polypipe bought out the equity controlled by its financial sponsors from private equity firm Castle Harlan, Inc. This was possibl;e with the backing of a finance package offered by the Bank of Scotland.
'Bank of Scotland as our new, UK based, financial sponsors provide the business with a longer term investment horizon and can provide access to additional funds for expansion including the potential for further complementary acquisitions', said David Hall, CEO Polypipe Group.
The move follows a period of business expansion, including its July acquisition of the Terrain above-ground drainage business to drive further growth.
For the 12 months ended December 31, 2006, Polypipe generated revenues of £331m.
'Polypipe has considerably strengthened and refocused its business during the period under Castle Harlan's ownership, with a reliable record of revenues, profits and cash generation linked to significant investments in manufacturing and new products as well as making the recent Terrain acquisition, ' said David Hall.
'Our team of nearly 50 senior managers, who originally elected to invest in the company alongside Castle Harlan will now hold a controlling equity stake giving us greater control over our future plans.'
Plastic piping is being regarded more and more as quicker and easier to use than copper piping. Particularly with time constraints placed on fit out, it is being used more and more in the HVAC trade. In domestic new builds virtually all piping used is plastic.
Castle Harlan acquired the Polypipe Group business in 2005. The Polypipe Group's UK headquarters is based in Doncaster, South Yorkshire.
Polypipe operates 22 manufacturing and operations sites in five European countries and China, employing 2,800 people and manufacturing more than 350 million metres of pipe per annum.