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Sat October 19 2019

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Strategic acquisition for Polypipe

1 Oct Polypipe has bought Alderburgh, a manufacturer of plastic injection moulded stormwater attenuation tanks, structural waterproofing and geocellular membranes.

Alderburgh manufactures a range of stormwater management modules
Alderburgh manufactures a range of stormwater management modules

Polypipe has paid £14m for the business, previously owned and run by 63-year-old Peter Davidson.

Rochdale-based Alderburgh generates 80% of its revenues from its geocellular attenuation systems, the stackable Versavoid system, and the Pluvial cube system. These products help address the requirements of sustainable urban drainage regulations by creating load-bearing tanks underground to store stormwater and let it drain away naturally, rather than letting stormwater rush into the watercourse creating flood events downstream.

Unlike Polypipe's own Polystorm and Permavoid systems, which are manufactured as single finished cells, Alderburgh's Versavoid system is a stackable system, which means individual parts of the cell can be nested for transportation and assembled on site.

Through its Solutek installation service, Alderburgh offers a supply and fit service that has become increasingly popular in recent years. Polypipe has not.

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Alderburgh has 100 employees and a 68,000 sq ft manufacturing facility in Rochdale, mainly injection moulding the geocellular attenuation cells.

For the year to 30th September 2019, it is forecast to generate revenue of £17m and adjusted Ebitda of £2.1m.

Polypipe chief executive Martin Payne said: "The acquisition of Alderburgh is another step forward in the group's stated strategy of filling product gaps and adjacencies, expanding our platform and market reach in the UK, and providing a ‘one stop shop’ for our customers.  Like other parts of our business, the water management systems market is being positively impacted by legislative change, and this acquisition gives Polypipe further exposure to this growing segment of the market. Alderburgh will be integrated into Polypipe's Commercial and Infrastructure Systems segment, where we will focus the capabilities and synergies of the combined group to drive growth. We are delighted to welcome Alderburgh's management and employees to Polypipe. With our solid organic growth drivers, successful acquisitions track record, and a continued healthy pipeline of bolt on acquisitions, the Board believes we have a clear, deliverable strategy that will continue to create excellent shareholder value."

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