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02 Feb 2021 | 08:04

Polypipe acquires Nu-Heat, updates on trading

(Sharecast News) - Polypipe said on Tuesday that it had acquired heating systems supplier Nu-Heat Holdings for a total of £27.0m on a cash-free, debt-free basis. The FTSE 250-listed firm highlighted Nu-Heat's market-leading position, complementary to its existing portfolio of brands, as the rationale for the acquisition and also pointed to the company's "solid track record" of growth, profitability and good cash flow generation.

Polypipe added that the move also further expands its proposition of climate management solutions and creates added value via integration with Nuaire Mechanical Heat and Ventilation Recovery systems, with potential for revenue and cost synergies.

Chief executive Martin Payne said: "I am delighted to announce the acquisition of Nu-Heat, which aligns with our key growth drivers, including our focus on low carbon heating and solutions for the environmental challenges facing the built environment.

"This acquisition will enable us to further develop our underfloor heating capabilities, and to develop new and exciting ways to integrate underfloor heating, heat pumps, and air-based climate management systems."

In terms of recent trading, Polypipe added that its performance continued to recover throughout the end of December, with underlying operating profit for 2020 coming in "slightly ahead" of previous guidance of £40.0m, with this momentum continuing into the new year without any material impact from the third national lockdown.

As of 0845 GMT, Polypipe shares were up 2.14% at 525.0p.
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