March 18, 2014
Polypipe Ltd., the privately-owned Doncaster, England-based manufacturer of plastic piping systems, announced March 18 that it plans to float on the London Stock Exchange next month.
The group said the offer of half the company’s available shares — currently owned by existing shareholders company including senior management and the firm’s principal shareholder, Cavendish Square Partners, a private equity outfit — would be made to institutional and professional investors.
Earlier reports suggested the float could value the Polypipe business at more than 400 million pounds (US$664 million).
David Hall, Polypipe’s chief executive, said: “I am delighted to be leading Polypipe’s return to the public markets after an important phase of structural improvements under the current owners.
“Our business has emerged strongly from the construction downturn and is now well-invested and well positioned to take advantage of new market opportunities.
“The structural trends in our market — the substitution of legacy piping materials for modern plastic systems and regulatory support for carbon efficiency and water management solutions — provide a strong basis for continued growth in the coming years.”
Group chairman Alan Thomson said: “The company has a great corporate culture, reinforced by the fact that a large number of Polypipe’s management are also equity shareholders.
“This has the advantage in the market of aligning management to long-term value creation and is one of the key reasons why the business has emerged stronger than its competitors following a tough few years.”
Polypipe derives more than half its sales in the United Kingdom. Founded by former plumber Kevin McDonald in 1980, Polypipe recorded sales of 300.8 million pounds in 2013, with operating profit of 39.7 million pounds.