LDC sells Adey for £210m

The enterprise value represents 11.8x its EBITDA, and pro-forma 2021 year-end leverage will be below 1.5x.

Polypipe, a listed UK-based manufacturer of plastic pipes, acquired Adey for a cash consideration of £210m on a debt-free and cash-free basis. The consideration will be funded via a combination of the acquirer's existing debt facilities and the proceeds of an equity placing, representing 8.2% of Polypipe's issued share capital. The placing is being conducted through an underwritten accelerated bookbuilding process.

The company currently generates 90% of its revenues in the UK and is expected to pursue international growth opportunities following the transaction.

Previous funding
LDC acquired Adey in June 2016. According to Unquote sister publication Debtwire, Alcentra provided a €60m unitranche to support the deal.

Company
Adey is a provider of magnetic filters, chemicals and related products, which the company claims protect against magnetite and other performance issues in water-based heating systems, improving energy efficiency. It operates in predominantly residential end markets. Established in 2003, the company is based in Gloucester.

In 2020, Adey reported unaudited revenues of £51m and underlying EBITDA of £18m.

People
Adey – Matthew Webber (CEO).

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