Member Article

Doncaster’s Polypipe secures £160 million package to support IPO

Doncaster’s Polypipe has agreed a £160 million funding package from Lloyds Bank Commercial Banking to support the manufacturing group’s Initial Public Offering.

The bank’s Yorkshire-based Mid Markets and Strategic Finance teams, alongside RBS, Santander and Barclays, provided the group with a £120 million term loan and a £40 million standby revolving credit facility.

Polypipe will use the funding to refinance an existing bond and to pursue expansion plans in high growth sectors such as water management and carbon efficiency.

Founded in 1980, Polypipe is now one of Europe’s largest manufacturers of plastic piping systems, producing over 20k product lines which are used in the residential, commercial and infrastructure sectors.

Polypipe, which has a turnover of £300 million and over 2,000 employees, operates 16 facilities across the UK, Europe and Middle East.

The IPO marks a return to the stock market for the plastic piping systems manufacturer after a 14-year absence.

Peter Shepherd, Polypipe’s CFO, said: “This new facility further strengthens our financial position and ensures that we have the resources in place to capitalise on the opportunities presented by the recovering economy.

“Our banking partners were supportive during the IPO process and structured a finance package that provides a robust platform for future growth.”

David Hunt, relationship director for Lloyds Bank Commercial Banking, said: “Polypipe is a great example of a successful British manufacturing business.

“It benefits from a forward thinking management team and an innovative range of products, which have helped it to open up new markets. We are very pleased to have played a role in their successful IPO”.

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