Doncaster-based Polypipe has received a £300m funding package from four banks to refinance borrowings and acquire a ventilation systems manufacturer for £145 million.
The business has received a five year revolving credit facility of £75 million each from Barclays, Lloyds Bank Commercial Banking, Royal Bank of Scotland and Santander.
The company will use it refinance post-IPO borrowings, provided by the same banks, and to acquire ventilation firm Nuaire Ltd, from Electra Partners for £145 million.
Founded in 1980, Polypipe is one of Europe’s largest manufacturers of plastic piping systems, producing more than 20,000 product lines used in the residential, commercial and infrastructure sectors. The business, which has a turnover of £300m and more than 2,000 employees, operates 16 facilities across the UK, Europe and Middle East.
It returned to the stock market after a 14-year absence in April 2014 supported by the same four banking partners.
Nuaire Ltd is based in Caerphilly, exporting to 30 countries, and is the UK’s leading manufacturer of branded commercial ventilation systems.
Peter Shepherd, Polypipe’s chief financial officer, said: “The acquisition of Nuaire, which is one of the leading providers for the UK’s new build market, significantly bolsters our capability in a sector which is experiencing significant levels of growth. The funding also strengthens our relationship with our banking partners and ensures we have headroom in place to capitalise on opportunities presented by the construction sector.”
A spokesperson for the four banks said: “The growth of Polypipe since its successful IPO last year is testament to the expertise and ambition of its management team. Having supported the business through its return to the stock market, we are confident of its continued success in its next stage of expansion.”
Anna Robson and Chris Lister from DLA Piper’s Yorkshire team once again acted for the banks on a Polypipe transaction.