£145m Polypipe deal set to clear the air

Doncaster’s Polypipe, one of Europe’s biggest manufacturers of plastic pipes, is to buy a ventilation systems manufacturer in a £145m deal that will tap into new legislation to reduce carbon emissions.

Analysts said the acquisition of Welsh firm Nuaire will be a good strategic fit for the firm.

In a bid to reduce carbon emissions, the Government has introduced strict new rules on building regulations which are designed to reduce energy wastage.

Ventilation can play a large part in reusing warm air instead of it simply being pumped back into the atmosphere.

Polypipe said the acquisition will be financed with a combination of existing cash from the balance sheet and new debt and is expected to complete by the end of August.

Chief executive David Hall ​said there was little overlap in the market between the two firms.

Nuaire will keep its name and be run independently. All 450 employees are also expected to remain with the business.

“Culturally the company is very similar to us. It has got a focused sales force that sells full solutions.

“We are very pleased to welcome the staff to Polypipe. All the senior management in Nuaire are staying with the business. They are enthusiastic to be part of a UK PLC.”

The firm’s plastic pipes are set to be used as ducting in Nuaire’s ventilation systems, he added.

Mark Huxtable, chief executive of Nuaire, 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.”

​In the year to June 30 Nuaire’s sales rose 19 per cent to £63.5m and earnings rose 30 per cent to £12.8m.

Source:

British Chamber Manufacturing Update

BCC: Manufacturing sector faces challenges despite modest growth

  • Manufacturing output in June 2015 was up 0.2% on the month and up 0.5% on the year
  • Total Industrial production in June 2015 was -0.4% on the month and up 1.5% on the year

Commenting on the index of production figures for June 2015, published today by the ONS, David Kern, Chief Economist of the British Chambers of Commerce, said:

“Although manufacturing output returned to modest growth in June, after declining in May, the sector’s overall performance remains mediocre. Year on year growth is below 1% and the level of manufacturing output is still almost 5% below its pre-recession peak in the first quarter of 2008.

“The manufacturing sector is up against a number of headwinds including difficult global circumstances. While there have been modest improvements in the Eurozone, which will help exporters in coming months, progress will be difficult because of the recent strength of the sterling against the euro. Any premature action on interest rates is likely to make these problems worse.

“The UK economy will remain dependent on its dynamic and competitive services sector but manufacturing remains a vital sector for exports, innovation and productivity. The government must reinforce its efforts to encourage manufacturing firms to explore international export markets, particularly beyond the European Union.

Ends

Notes to editors: http://www.ons.gov.uk/ons/rel/iop/index-of-production/june-2015/index.html

The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 52 Accredited Chambers of Commerce across the UK, representing thousands of businesses of all sizes and within all sectors. For more information visit: www.britishchambers.org.uk