Polypipe buys urban drainage firm for up to £16.5m

Doncaster-based Polypipe said its target, Permavoid, is uniquely placed to deal with urban water management challenges which are increasing due to the impacts of climate change and urbanisation. Permavoid supplies surface water management solutions in commercial, residential, and sports pitch applications.Polypipe will pay an initial cash consideration of £4m and a further deferred consideration of up to £12.5m depending on Permavoid's performance over the next two years.Permavoid's products store surface water to prevent flooding and channel the stored water to irrigate soil. Polypipe currently manufactures and sells Permavoid's products under exclusive licence for the UK and Irish markets.Polypipe's CEO Martin Payne said: "The acquisition of Permavoid is a small, but important step towards delivering on our strategic goals. "The acquisition brings new intellectual property into the group with exciting opportunities for further product integration and innovation, allowing Polypipe to enhance its market leading water management and attenuation solutions in the UK, as well as provide opportunities to leverage those market leading solutions in Europe and other markets." Permavoid's products include sustainable urban drainage systems, green infrastructure, Bluegreen roofs, podium decks and sports surface applications.Polypipe said the acquisition will enhance its existing market leading water management solutions product ranges. Permavoid has provided solutions for many large urban water management projects throughout Europe such as the redevelopment of Orlysquare in Amsterdam, phase 1 of the Maankwartier Heerlen development in Holland, and the recent redevelopment of the Anfield stadium.Permavoid is expected to record revenue of £3.8m and adjusted EBITDA of £500,000 in the year to September 30. The acquisition is expected to be earnings enhancing in its first full year after completion.