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.