Rhondda firm snaps up plastic products supplier
A Rhondda-based firm has completed the acquisition of a family-owned plastic products supplier. The deal has been part-funded with a significant loan and equity investment by the Development Bank of Wales and will see the business retained in Wales.
UPVC Direct has acquired Principality Plastics Warehouse, which was established in 1992 by John Peters and has warehouses in Cardiff, Gloucester and Swansea.
Supplying plastic building supplies to the trade and DIY markets, Principality has a turnover of £9m.
All 40 staff will be retained by UPVC Direct, the building and maintenance supply company established by entrepreneurs Paul Ragan and Matthew Epps in August 2021.
UPVC Direct's ambitious growth strategy is focused on acquisition and customer integration. It will use some of the funding from the Development Bank to invest in an environmentally friendly range of products and upgrade technology to support business growth.
John Peters, founder of Principality, said: "As a family, we’re so proud of our team for everything they have achieved. The time has come to retire safe in the knowledge that the UPVC Direct team will be a safe pair of hands to take over, particularly as they have similar values and a great reputation."
Paul Ragan, founder of Motaquote Insurance and managing director of UPVC Direct, said: "I'm delighted with the acquisition of Principality Plastics Warehouse and grateful to our advisers and the Development Bank for working with us to provide the funding necessary to get the deal over the line and underpin the future growth of the business."
Deputy fund manager Jo Thomas worked on the deal with senior investment executives Navid Falatoori and Ruby Harcombe from the Development Bank.
Thomas said: “This has been a team effort and together we have focussed on putting together a funding package with equity from our Wales management Succession Fund that is ideal for acquisitions and facilitating management succession. The mix of debt and equity secures the future of Principality Plastics in Wales and provides additional headroom for growth.
"Like many family owned businesses, John wanted to manage his exit in a way that will protect both the legacy and the future of Principality. The business has an impressive track record but also opportunity for further expansion as part of the UPVC Direct Group given the product synergies and opportunities to cross-sell. With a highly credible and experienced management team, we have no doubt that there is a successful future ahead."
Lewis Silkin and GS Verde advised UPVC Direct and Principality on the deal. Haines Watts and Geldards acted for the Development Bank of Wales.
Funding for the acquisition came from the £216m Wales Business Fund which is financed by the European Regional Development Fund and the Welsh Government along with the £25m Wales Management Succession Fund that is financed by Welsh Government and Clwyd Pension Fund.
Article credited to Insider Media