Polypipe: Sold to IMI

Plastic pipe producer Polypipe of Doncaster has been sold by IMI to American private equity firm Castle Harlan. Castle Harlan says it sees opportunities for growth ‘through greater focus on core businesses, more coordination between business units and new products, including products from China and other low cost sources’. The company also hints at ‘possible complementary acquisitions’.
IMI has sold Polypipe as the last part of a four-year restructure to focus on fluid control products and beverage dispensing equipment. The final price depends on Polypipe’s performance, but could reach £293 million.
Polypipe focuses on rainwater, sewage and drainage products as well as plumbing and central heating pipes and fittings. Operating profit in 2004 was £27•2 million on sales of £372 million. Polypipe employs 2,900 people in 39 plants, mainly in the UK. Its doors and windows business had already ceased operations before the sale.
Former Polypipe Civils managing director David Hall has rejoined the company as chief executive.

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