Polypipe raises £96.3m in placing to help fund ADEY acquisition

Polypipe said on Thursday that it has raised around £96.3m in a placing to help fund the £210m acquisition of magnetic filters maker ADEY.

The company placed just over 18.7 million shares at 515p each. This is a 0.2% premium to the closing mid-market share price of 514 pence on Wednesday. Polypipe said it was pleased by the "strong support" it had received from its existing shareholders and new investors.

The FTSE 250 piping manufacturer announced after the close on Wednesday that it had agreed to buy ADEY from private equity firm LDC and other shareholders. The rest of the consideration will be funded through existing debt facilities.

The acquisition, which is expected to be double-digit accretive to earnings per share in the first full year of ownership, is a "strong strategic fit", Polypipe said, broadening its UK residential offering in sustainable water and climate management.

At 0820 GMT, the shares were up 5.8% at 544p.