Polypipe said that it had targeted ventilation for some time, having built an understanding of the sector from its portfolio of ducting systems. Caerphilly-based Nuaire will complement this understanding through its knowledge and experience of mechanical ventilation.
The acquisition will be financed using a combination of existing cash from the balance sheet and new debt and is expected to complete by the end of August.
Polypipe chief executive David Hall said: “We have long been an admirer of Nuaire and this acquisition provides a perfect fit for us. Nuaire expands considerably our product platform and market reach within the growing ventilation sector, which, like other parts of our business, are being positively impacted by environmental legislative change. Nuaire will continue to operate as an independent division, as we leverage the capabilities of the combined group to drive growth, bringing more choice to our broader customer base. We are delighted to welcome Nuaire’s management and staff as we look forward to accelerating the strategic development of the enlarged group.”
Nuaire chief executive Mark Huxtable said: “We are delighted to be joining Polypipe. The companies share many characteristics, including a similar culture and philosophy, and together we will be better placed to tap into the excellent prospects for the sector.”
For the year to June 2015 Nuaire generated sales of £63.5m, up 19% on the previous year, and EBITDA up 29% to £12.8m. As at 30th September 2014, its had gross assets of £69.9m.