Polypipe Group PLC Potential sale of French operations/trading update (3978D)
January 31 2018 - 2:00AM
UK Regulatory
TIDMPLP
RNS Number : 3978D
Polypipe Group PLC
31 January 2018
31 January 2018
Polypipe Group plc
Exclusive negotiations for the sale of French operations and
trading update
Exclusive negotiations for the sale of French operations
Polypipe Group plc ("Polypipe" or the "Company") has entered
into exclusive negotiations to sell Polypipe France Holding
("Polypipe France"), its French operations, to Ryb S.A. ("Ryb"), a
France-based manufacturer and distributor of plastics in Europe
(the "Disposal"). The cash consideration payable by Ryb will be
EUR16.5 million on a debt free, cash-free and normalised working
capital basis.
For the year ended 31 December 2017, Polypipe France generated
revenue of approximately EUR67.6m and underlying operating profit
of approximately EUR1.5m.
Completion of the transaction, which remains subject to an
employee consultation process, is expected in the first half of
2018. Proceeds from the Disposal, receivable in cash at completion,
will be used to reinvest in the growth of the Company.
Trading update
Further to the update on trading announced in November 2017, the
Group's trading performance for the full year was in line with
management expectations. The Company will announce its preliminary
results on 20 March 2018.
Commenting on the transaction, Martin Payne, Chief Executive
Officer, said:
"Polypipe France has historically operated in a competitive area
of the French construction market and will be better able to grow
under new ownership. In line with its strategy, Polypipe will
continue to focus its resources fully on delivering profitable
growth, both organically and by acquisition, through legacy
material substitution, legislative tailwinds in water management
and carbon reduction, and geographic reach."
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) No 596/2014.
Enquiries:
Polypipe
Martin Payne, Chief Executive Officer +44 (0) 1709 770 000
Brunswick
Nina Coad +44 (0) 2074 045 959
Elena Georgantzi
Notes to Editors:
Polypipe is the largest manufacturer in the UK, and among the
ten largest manufacturers in Europe, of plastic piping systems for
the residential, commercial, civils and infrastructure sectors by
revenue. It is also a leading designer and manufacturer of energy
efficient ventilation systems in the UK.
The Group operates from 20 facilities in total, and with over
20,000 product lines, manufactures the UK's widest range of plastic
piping systems for heating, plumbing, drainage and ventilation. The
Group primarily targets the UK and European building and
construction markets with a presence in Italy and the Middle East
and sales to specific niches in the rest of the world.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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