Polypipe Group negotiating sale of French operation in €16.5m deal
Doncaster-headquartered Polypipe Group plc has entered into exclusive negotiations to sell Polypipe France Holding, its French operations, to Ryb S.A., which is also based in France.
Ryb, a manufacturer and distributor of plastics in Europe, will complete the transaction via a cash consideration of €16.5m on a debt free, cash-free and normalised working capital basis.
For the year ended 31st December 2017, Polypipe France generated revenue of approximately €67.6m and underlying operating profit of approximately €1.5m.
The acquisition, which remains subject to an employee consultation process, is expected to be completed in the first half of 2018.
Polypipe is a manufacturer of plastic piping and ventilation systems for the residential, commercial, civils and infrastructure sectors.
Martin Payne, chief executive officer at Polypipe, said: “Polypipe France has historically operated in a competitive area of the French construction market and will be better able to grow under new ownership.
“In line with its strategy, Polypipe will continue to focus its resources fully on delivering profitable growth, both organically and by acquisition, through legacy material substitution, legislative tailwinds in water management and carbon reduction, and geographic reach.”