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Polypipe sale opens door to acquisition

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YORKSH IRE-based plast ic drainage specialist Polypipe could be on the acquisition trail after an American investment firm snapped up the company for £293 million.

Private equity investor Castle Harlan paid £219 million cash for the company last week, with a further £39 million loan note making up the initial sum. A further £35 million is payable to former owner IMI in 2007 if Polypipe hits its performance targets.

The deal will allow the Doncaster-based company to invest cash in its existing business and the firm refused to rule out further acquisitions.

Speaking after the deal was announced, new Polypipe chief executive David Hall said: 'Polypipe remains a well positioned business and continues to have significant opportunities for development. We now have the backing to act as an independent company and to invest in further growth.'