31 January 2018
Polypipe Group plc
Exclusive negotiations for the sale of French operations and trading update
Exclusive negotiations for the sale of French operations
Polypipe Group plc ("Polypipe" or the "Company") has entered into exclusive negotiations to sell Polypipe France Holding ("Polypipe France"), its French operations, to Ryb S.A. ("Ryb"), a France-based manufacturer and distributor of plastics in Europe (the "Disposal"). The cash consideration payable by Ryb will be €16.5 million on a debt free, cash-free and normalised working capital basis.
For the year ended 31 December 2017, Polypipe France generated revenue of approximately €67.6m and underlying operating profit of approximately €1.5m.
Completion of the transaction, which remains subject to an employee consultation process, is expected in the first half of 2018. Proceeds from the Disposal, receivable in cash at completion, will be used to reinvest in the growth of the Company.
Further to the update on trading announced in November 2017, the Group's trading performance for the full year was in line with management expectations. The Company will announce its preliminary results on 20 March 2018.
Commenting on the transaction, Martin Payne, Chief Executive Officer, 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."
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014.
Martin Payne, Chief Executive Officer 44 (0) 1709 770 000
Nina Coad 44 (0) 2074 045 959
Notes to Editors:
Polypipe is the largest manufacturer in the UK, and among the ten largest manufacturers in Europe, of plastic piping systems for the residential, commercial, civils and infrastructure sectors by revenue. It is also a leading designer and manufacturer of energy efficient ventilation systems in the UK.
The Group operates from 20 facilities in total, and with over 20,000 product lines, manufactures the UK's widest range of plastic piping systems for heating, plumbing, drainage and ventilation. The Group primarily targets the UK and European building and construction markets with a presence in Italy and the Middle East and sales to specific niches in the rest of the world.