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MOSCOW — Leading Russian pipe and composites producer Polyplastic Group is making its first acquisition in the European Union with the takeover of British pipeline specialist Radius Systems Ltd.
Under an agreement signed by the parties at the end of February, Moscow-based Polyplastic is buying plastics pipe and fittings supplier Radius of Alfreton, England, and its subsidiaries for an undisclosed sum.
Radius Systems, formed in 2008 through a buy-out of the UK and Ireland infrastructure pipe operations of the Finnish group Uponor Oy, employs 370 at facilities in Alfreton and in Lurgan and Banbridge, Northern Ireland. In 2012, the company generated net annual sales of 100 million euros.
The takeover includes Radius's telecommunications division and its pipeline field services offshoot Radius Plus. The UK group will continue to trade under its established Radius brands, according to Polyplastic.
"The acquisition brings complementary technologies and innovation and reciprocal access to new markets. The strengthened group will benefit from the scale generated by the acquisition thereby creating a solid foundation for future growth," commented the Russian group's CEO Miron Gorilovsky.
The takeover means Radius can "capitalize on being part of a substantial international group", according to the UK firm's chief executive Andy Taylor. "The completion of this acquisition ... should be welcome reassurance for both our loyal employees and those suppliers who have supported the business through a tough two year period," he added.
Polyplastic, formed in 1991, operates 12 plastics processing plants in Russia and Belarus, the Ukraine and Kazakhstan. It manufactures more than 290,000 metric tons per year of composite materials, polyethylene pipe and fittings. Its composite capacity is concentrated at three Russian sites of Saratov, Togliatti and Moscow.