Member Article

Doncaster’s Polypipe announces intention to launch an IPO

Polypipe, a Doncaster-based manufacturer of plastic piping systems for the residential, commercial, civils and infrastructure sectors, today announced its intention to float on the London Stock Exchange.

Reports value the group at around £400 million.

The IPO will comprise an offer of shares to certain institutional and professional investors. Reported revenue for 2013 was upwards of £300 million with an adjusted EBITDA of £54 million.

Founded in 1980, the Group is among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue.

The Group operates from 16 facilities in total, targeting the residential (51% of 2013 sales) and commercial, civils and infrastructure (49% of 2013 sales) sectors, offering the widest product range in the United Kingdom.

The Group’s primary operations are in the UK, French and the Irish building and construction markets, with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.

Commenting on today’s announcement, David Hall, CEO of Polypipe, said: “I am delighted to be leading Polypipe’s return to the public markets after an important phase of structural improvements under the current owners.

“Our business has emerged strongly from the construction downturn and is now well-invested and well positioned to take advantage of new market opportunities.

“The structural trends in our market - the substitution of legacy piping materials for modern plastic systems and regulatory support for carbon efficiency and water management solutions - provide a strong basis for continued growth in the coming years”.

Polypipe’s chairman, Alan Thomson, added: “Polypipe is a proud British manufacturing company and the flotation provides an opportunity for investors to enter a sector primed for long-term growth.

“The company has a great corporate culture, reinforced by the fact that a large number of Polypipe’s management are also equity shareholders in the business.

“This has the advantage in the market of aligning management to long-term value creation and is one of the key reasons why the business has emerged stronger than its competitors following a tough few years.”

This was posted in Bdaily's Members' News section by Clare Burnett .