Alderburgh sold to Polypipe Group

Doncaster-based manufacturer Polypipe Group has acquired Alderburgh for £14m, in a transaction led by M&A advisor Initium.

Headquartered in Rochdale, Alderburgh designs, manufactures and installs plastic-injection-moulded storm water attenuation tanks, structural waterproofing and geocellular membranes, gas barrier and ventilation materials.

Established in 1980, Polypipe is one of Europe’s largest manufacturers of piping systems, water and climate management systems. Polypipe said its purchase was a “good strategic and cultural fit” for its operations, broadening its Water Management Systems offer, in particular the Versavoid stackable attenuation cell system and Pluvial cube system. These products create load-bearing tanks underground to store storm water and let it drain away naturally, rather than letting storm water rush into the watercourse creating flooding downstream.

Unlike Polypipe’s Polystorm and Permavoid systems which are manufactured as single finished cells, Alderburgh’s Versavoid system is stackable, which means individual parts of the cell can be nested for transportation and assembled on site.

At the time of the transaction, Alderburgh demonstrated a solid track record of growth, profitability and successful cash flow generation. The business operates a 68,000 sq ft manufacturing facility and has approximately 100 employees across its sales, R&D, despatch and manufacturing functions. For the year to September 2019, it was forecast to generate revenue of £17m and adjusted EBITDA of £2.1m.

The total consideration of £14m on a cash and debt free, normalised working capital basis comprises the entire issued share capital of Alderburgh Ltd, Alderburgh Ireland Ltd, Solutek Environmental Ltd. and Environmental Sustainable Solutions Ltd from Alderburgh’s owner, Peter Davidson and others.