May 31 2007
Polypipe has announced that it has agreed to acquire the Terrain business from its parent company, Geberit AG of Switzerland in a move that will strengthen Polypipe’s position in the European plastic piping and sanitary systems market. Terrain employs about 170 people, mainly at its UK manufacturing base in Aylesford, Kent, and achieved £25 million in sales in 2006.
The Terrain business covers a broad portfolio of non-pressure piping systems and is the leading name in the UK for above ground drainage products in commercial applications.
’With the acquisition of the Terrain brand Polypipe can significantly expand its presence in the commercial piping systems market and further penetrate the professional contractor and engineer base. The acquisition gives Polypipe the leading brand position in each of the residential, civils and commercial markets in the UK. With this balanced market position we are well placed to embrace and focus on all of the growth opportunities available to us.’ says David Hall, CEO of Polypipe.
‘The Terrain name is a brand with a strong heritage; it stands for high quality and customer orientation. The acquisition of the Terrain business will give Polypipe opportunity to develop further in the growing commercial building sector especially in light of the forthcoming construction associated with the 2012 Olympics.’
Made up of 24 principal brands across 14 companies, with over 2,700 employees across Europe and China, Polypipe manufactures a comprehensive range of plastic piping and sanitary systems for the residential, commercial and infrastructure markets across Europe. From its foundation in 1980 Polypipe has grown into a global organization with a turnover of more than £330m, producing some 20,000 products for water, air, energy and telecoms applications and over 350 million metres of pipe every year.
The agreement provides for separate exchange and completion dates to allow for the separation of the Geberit business from Terrain in the UK. The acquisition agreement has been approved by the Boards of Directors of Polypipe and Geberit.
‘This acquisition significantly improves Polypipe's commercial offerings and business channels, and underpins the business strategy of focus, simplification and growth,’ commented Howard D. Morgan, Chairman of Polypipe and Senior Managing Director of Castle Harlan, who sponsored the buyout of Polypipe almost two years ago