Private equity firm Halifax Group has nabbed the Polypipe division of Rinker Materials Corp. for $60 million.
Polypipe, based in Gainesville, Texas, is Halifax's first acquisition in plastic pipe, said Brent Williams, Halifax managing director. Halifax signed the purchase agreement Jan. 20, and the deal is expected to close by the end of February.
The division includes Rinker Materials Polypipe Inc. and Pipe Liners Inc., which make small- and large-diameter, high density polyethylene pressure pipe for several end markets including general industrial, water and waste water, oil and gas production, and natural gas distribution.
Halifax invests in infrastructure services, specialty and contract manufacturing, and health-care and wellness, Williams said.
``Polypipe is a wonderful fit,'' Williams said by telephone Jan. 21. ``It's got a very nice market position. It is a well-managed, high-quality business, with a terrific market position in a sector with excellent fundamentals.''
Rinker Group Ltd. of Chatswood, Australia, is the seller.
``The business ... has generated significant improvements in productivity and demonstrated solid growth in recent years,'' Rinker Group Chief Executive Officer David Clarke said in a news release. ``However, it has been regarded as noncore for some time.''
Polypipe Vice President David Fordyce will become CEO.
Williams said industry volumes have grown about 7-8 percent per year for the past 22 years, as PE has taken market share from cast iron, steel and other materials.
Polypipe operates facilities in Gainesville; Erwin, Tenn.; Fernley, Nev.; Kimball, Neb.; Roaring Springs, Texas; and Sandersville, Ga.
In Plastics News' 2004 ranking of pipe, profile and tubing extruders, Polypipe had estimated annual sales of $90 million and 200 employees.