Published On: Thu, Nov 17th, 2022

The Epwin Group acquires PVC re-processor and recycler Poly-Pure

Manufacturer of energy efficient and low maintenance building products The Epwin Group has completed the acquisition of Poly-Pure for an initial cash consideration of £15 million on a debt-free and cash-free basis, funded from the Group’s existing facilities. Poly-Pure is a leading UK materials re-processor, recycling post-consumer and post-industrial PVC building materials, notably PVC-U window frames. Established in 2018, Poly-Pure supplies re-processed PVC to a diverse customer base. The business is based in Norwich and has 25 employees.

 In Poly-Pure’s financial year ended 31 July 2022, it expects to report revenues of c.£10 million (£4.7 million in its financial year to 31 July 2021) and adjusted EBITDA of c.£2.5 million (£0.4 million in the year to 31 July 2021). Underlying profit before tax for the year ended 31 July 2022 is expected to be £2.4 million. Poly-Pure has net assets on acquisition of approximately £3m. The acquisition of Poly-Pure is expected to be margin accretive for Epwin at the adjusted EBITDA level and is expected to be immediately earnings enhancing.

 A key aspect of the Group’s strategy is to execute value enhancing acquisitions. The acquisition is a strong strategic fit with the Epwin Group. Poly-Pure has generated strong levels of revenue and EBITDA growth since its establishment, with a diverse and growing customer base and with a programme to expand its processing capacity. There is increasing industry focus on improving the use of reprocessed materials in manufacturing and Epwin believes there are a range of opportunities for Poly-Pure to continue to execute its growth plan. Poly-Pure has the ability to provide Epwin with a further, cost effective, supply of recycled PVC, with the potential for operational efficiencies and cost benefits.

 The acquisition, alongside Epwin’s existing capital expenditure programme, accelerates the Group’s ambitions to integrate an even greater proportion of recycled materials into its products. Poly-Pure has strong links within the industry and a proven ability to source post-industrial and post-consumer recyclable building plastics materials. The greater ability to re-process waste materials provides Epwin with an additional source of raw material.

  The acquisition will be funded from existing Group facilities. As at 30 June 2022 covenant net debt was £7.3 million which represented 0.3x adjusted EBITDA, providing the Group with in excess of £65 million of headroom on its facilities. The directors of Poly-Pure will remain with the business, working within Epwin’s Extrusion and Moulding segment to ensure the Group’s recyclate requirements are serviced and maximised.  Jon Bednall, Chief Executive Officer, said: “I am pleased to welcome Poly-Pure to Epwin. 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. We welcome Poly-Pure’s management and employees to the Epwin Group.”