Gloucester based ADEY sold to Polypipe for £210 million

ADEY

Global water treatment manufacturer and magnetic filtration pioneer ADEY has been sold to Doncaster-headquartered Polypipe, one of Europe’s largest manufacturers of piping systems, water and climate management systems. ADEY was sold to Polypipe by mid-market private equity firm LDC and other existing ADEY shareholders

Matthew Webber, ADEY Chief Executive Officer, said: “We are excited to be joining Polypipe and by the growth opportunities ahead. The companies share a similar culture and philosophy, focused on delivering sustainable water and climate management solutions. The combined business will allow us better to serve our customers, which will continue to be the foundation for our future success.”

ADEY will continue to be led by the existing management team.

As Europe’s largest manufacturer of piping systems, water and climate management systems, Polypipe complements ADEY’s existing market-leading position and capabilities in the UK, with largely common end-users (housing developers and plumbing and heating installers) and routes to market (merchants and specialist distributors).

Martin Payne, Polypipe Chief Executive Officer, said: “We are delighted to announce the acquisition of ADEY. Polypipe’s strategy is to grow both organically and through carefully selected value-enhancing acquisitions, with a particular focus on sustainability and sectors within climate and water management. ADEY is a pioneer and market leader in the residential heating protection market, one of the fastest growing segments of the UK construction market, underpinned by a shift towards more energy-efficient heating systems and regulatory tailwinds. Like Polypipe, it has a strong track record of innovation and new product development, with the acquisition strengthening the proposition for our customers and accelerating Polypipe’s growth. We welcome ADEY’s management and employees and look forward to working with them over the coming years.”

How did Adey grow?

In 2003, Chris Adey was an independent heating engineer working with British Gas. Busy with work during the day, in the evenings he began to work on a new idea to solve a problem he faced regularly.

He designed a piece of equipment which harnessed magnetic power to clean domestic central heating systems. He reckoned that the equipment would extend the life of both the heating system and the boiler – and reduce maintenance bills. In 2016, Chris finally bowed out of the business after a private-equity backed management buyout.

Based in Gloucester, ADEY is  now a leading provider of magnetic filters, chemicals and related products, which protect against magnetite and other performance issues in water-based heating systems, improve energy efficiency and extend boiler life, operating in predominantly residential end markets. ADEY also provides advanced water testing services from its UKAS-accredited laboratories.

In the year ended 31 December 2020, ADEY reported (unaudited) revenue of £51 million and Underlying EBITDA of £18 million. Despite the disruption to operations caused by COVID-19, ADEY delivered around five per cent net revenue growth in the year ended 31 December 2020.