Caerphilly-based ventilation system manufacturer Nuaire has been sold for £145 million.
The company, which employs around 450 people, has been sold by Electra Private Equity to the Polypipe group.
Nuaire makes equipment for commercial and residential applications, with its products helping clients reduce their energy consumption and carbon emissions.
From its base on Caerphilly town’s Western Industrial Estate, the business serves more than 5,000 customers in the UK and internationally. In the UK, the company’s customers are mostly contractors and building consultants.
Electra originally invested £23m in the management buyout of Nuaire in 2007.
Mark Huxtable, Chief Executive of Nuaire, said: “We are delighted to be joining Polypipe. The companies share many characteristics, including a similar culture and philosophy, and together we will be better placed to tap into the excellent prospects for the sector.”
David Hall, Polypipe Chief Executive, said: “We have long been an admirer of Nuaire and this acquisition provides a perfect fit for us.
“Nuaire expands considerably our product platform and market reach within the growing ventilation sector, which, like other parts of our business, are being positively impacted by environmental legislative change. Nuaire will continue to operate as an independent division, as we leverage the capabilities of the combined group to drive growth, bringing more choice to our broader customer base.
“We are delighted to welcome Nuaire’s management and staff as we look forward to accelerating the strategic development of the enlarged group.”
Polypipe, based in Doncaster, is one of Europe’s largest manufacturers of plastic pipe systems for residential, commercial and infrastructure use.
Charles Elkington, a partner at Electra Partners, said: “In 2007 we saw an opportunity for regulatory-driven growth in the ventilation market. With our backing, Nuaire has invested strongly in new product development and successfully expanded its customer base, particularly in the residential market.
“The result of this has been an 80% increase in revenues and a 120% increase in profits for the business which has generated a strong investment return for Electra.”