Polypipe’s (PLP) access to high-growth markets backed by environmental legislation has been significantly boosted by its £145m acquisition of ventilation product manufacturer Nuaire. News of the deal, which is expected to spark double digit enhancement to EPS, sent shares in the building products specialist up 8 per cent.
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As legislation aims to reduce carbon emissions, the UK ventilation market is forecast to outstrip domestic construction market growth. Wales-based Nuaire, which will continue to operate as an independent division, generated sales of £63.5m and profits of £12.8m in the year to June. Prior to the acquisition, broker Berenberg forecast EPS of 17.9p in the year to December 2015, rising to 21.3p in 2016.
