Epwin Group acquires materials re-processor at 6x EBITDA
Mon, 12 Sep 2022 | BUSINESS SALE
Building products maker Epwin Group has acquired Norwich-based materials re-processor Poly-Pure in a deal valued at £15 million. The deal represents a 6x multiple of Poly-Pure's estimated adjusted EBITDA of £2.5 million for the year ending July 31 2022, generated on expected revenue of £10 million.
Poly-Pure recycles post-consumer and post-industrial PVC building materials, particularly UPVC window frames. The company, founded in 2018, supplies its re-processed PVC to customers from a diverse range of industries.
Epwin says that it expects the acquisition to be margin accretive and that the adjusted EBITDA will be immediately earnings enhancing for the group. The company added that the deal will be funded by existing group facilities.
The group cited a number of key factors that it said would make Poly-Pure a strong strategic fit. This includes significant growth opportunities, due to the company’s strong revenue and EBITDA growth, diverse and growing customer base and the increasing industry focus on using reprocessed materials.
Epwin added that the acquisition will also deliver cost synergies, improved material sourcing and will help to enhance the group’s sustainability by enabling it to use a greater proportion of recycled materials in its products.
Post-acquisition, Poly-Pure's directors will remain with the company and work within Epwin’s Extrusion and Moulding division.
Epwin CEO Jon Bednall said: “Poly-Pure is a high-quality, growing business and a strong strategic fit, which will enable us to further bolster our recycling capabilities and accelerate delivery of our sustainability agenda."
"We see good opportunities to derive synergistic benefits with our existing operations, increase the proportion of recycled material used in our products and further improve the already strong environmental credentials of the Group's products. The acquisition also furthers our strategy of broadening our materials capabilities for the future.”
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