Aug 16 2007
Polypipe, the UK brand leader in plastic piping and sanitary systems has undertaken a refinancing exercise following a period of significant business expansion, including its successful acquisition of the Terrain above-ground drainage business, as a platform for further growth.
Under the terms of the refinancing Polypipe has bought out the equity controlled by its financial sponsors from New York based private equity firm Castle Harlan, Inc. with the backing of an integrated finance package provided by UK based Bank of Scotland.
'Polypipe has considerably strengthened and refocused its business during the period under Castle Harlan’s ownership, with a reliable record of revenues, profits and cash generation linked to significant investments in manufacturing and new products as well as making the recent Terrain acquisition,' commented David Hall, CEO Polypipe Group. 'Bank of Scotland as our new, UK based, financial sponsors provide the business with a longer term investment horizon and can provide access to additional funds for expansion including the potential for further complementary acquisitions. Our team of nearly 50 senior managers, who originally elected to invest in the company alongside Castle Harlan will now hold a controlling equity stake giving us greater control over our future plans.'
The refinancing has allowed Castle Harlan to realize their successful investment following strong performance by the Polypipe Group since the acquisition of the business in September 2005 giving them the opportunity to take advantage of the favourable dollar to sterling exchange rates to further enhance their returns.
As a lasting tribute to the success of the relationship and to employees, Castle Harlan and Polypipe Group are each contributing £100,000 to endow a charitable scholarship fund for the education of Polypipe personnel and their families.