Lead Forensics


LDC exits ADEY to Polypipe Group in £210m transaction

11 Feb 2021

Leading mid-market private equity firm LDC has exited its investment in ADEY the UK market leader in solutions to protect water-based heating systems, to Polypipe Group plc (Polypipe) a leading provider of sustainable water and climate management solutions for the built environment.

The transaction values the business at £210m.

Gloucestershire-headquartered ADEY specialises in the design, manufacture, and supply of innovative products and services that significantly improve the effectiveness of domestic and commercial heating and cooling systems and water treatment systems.

LDC invested in ADEY in June 2016 to support domestic and international expansion. During a four-and-a-half-year partnership, the business has grown net revenues from £34m (FY15) to £51m for the year ending 31 December 2020.

With LDC’s support, ADEY invested heavily in product development and, in an industry first, launched a next generation universal water testing kit which provides lab-style reporting and interpretation instantly to a smartphone. The business also strengthened its commercial water-testing service through its acquisition of Alpha Scientific in 2019 and added additional sites including a new satellite lab in Manchester. ADEY also opened a new purpose-built, 44,000 sq ft manufacturing and distribution facility in Gloucestershire.

In 2017, ADEY was awarded the Queen’s Award for Enterprise in International Trade for a third time. The award recognised the business’ homegrown success and expansion into 19 European countries as well as China, the United States, Australia and New Zealand.

The transaction will enable ADEY to further accelerate its international growth as part of Polypipe. Polypipe is the largest manufacturer in the UK of plastic piping systems and is also a leading designer and manufacturer of energy efficient ventilation systems. It primarily targets the UK and European building and construction markets with a presence in Italy, the Netherlands and the Middle East.

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With LDC’s support, we have scaled significantly both at home and overseas in the last four and a half years, enabling us to provide our customers around the world with the best possible preventative solutions in the heating systems market.”
Matthew Webber

“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.”

Dewi Hughes, Head of LDC in the South West, added: “ADEY is at the forefront of its industry and, during our partnership, has further proven its ability to innovate and to scale internationally. The business has the perfect platform and team to press on with its international growth plans as part of a wider group. We wish Matt and the team the very best on the next phase of their exciting journey.”

ADEY and LDC were advised by Rothschild and Osborne Clarke, and transaction support was provided by PWC and OC&C. Management were advised by Deloitte and Squire Patton Boggs.