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FTSE 250 plastics manufacturer Polypipe (LON:POLY) has announced the acquisition of Manthorpe Building Products, a leader in moulded and extruded plastic and metal fittings, for a total cash consideration of £52 million on a cash and debt free, normalised working capital basis. Polypipe believe that this addition is a good strategic fit as both companies offer different products to similar groups of end users.
Chief executive Martin Payne commented: “The acquisition of Manthorpe Building Products is a perfect fit for us, expanding our product platform and market reach in the UK and Irish residential and RMI markets, which, like other parts of our business, are being positively impacted by legislative change. Manthorpe will be integrated into Polypipe’s Residential Systems segment, where we will leverage the capabilities and synergies of the combined group to drive growth. We are delighted to welcome Manthorpe’s management and employees to Polypipe and look forward to accelerating the strategic development of the enlarged group.”
Shares in Polypipe rose by 8.90% to 335.20p (as of 11:50 BST).