Polypipe buys Alderburgh Group for £14m

Polypipe said it had bought stormwater tank maker Alderburgh Group for £14m in cash.

The company on Tuesday said it expected the deal to be earnings-per-share accretive and deliver returns in excess of the cost of capital in the first full financial year of ownership.

Polypipe said it expected Alderburgh was forecast to generate revenue of £17m and adjusted core earnings of £2.1m for the year to September 30.

“The acquisition is in line with Polypipe's strategy of broadening its market reach in water and climate management solutions, providing a "one stop shop" for our customers, and exploiting the key growth drivers of legislative tailwinds and legacy material substitution,” Polypipe said in a statement.

“Furthermore, it provides exposure to the emerging high-growth supply and fit market, which Polypipe can leverage further.”

The company added that it saw opportunities for both cost and revenue synergies, including a broader combined product offering and raw material savings.