NZX/ASX release 24 June 2011
Nuplex JV acquires Fibrelogic Pipe Systems
Nuplex Industries today announced that it has formed a joint venture company
with RPC Technologies to acquire Fibrelogic Pipe Systems (Fibrelogic) for
A$26 million, subject to final completion. This represents a 3.5x average
historical enterprise value to EBITDA multiple and Nuplex expects its share
will make a small positive contribution to its 2012 financial year earnings
per share.
Emery Severin, CEO of Nuplex said "When our composites business was assessed
as part of our recent group wide strategy review, opportunities for growth
were examined.
"Fibrelogic presented such an opportunity as it manufactures high quality,
technically advanced large diameter, continuous wound glass reinforced
plastic (GRP) pipes used in water reticulation, infrastructure and mining
applications - all industries with attractive long term growth prospects in
Australia.
"The JV brings together RPC Technologies'' engineering and project management
expertise and our own world class resin technologies and processes. With this
combination, Fibrelogic will continue to secure its position as Australia''s
leading GRP pipe manufacturer.
"This opportunity supports our composites business as it will benefit from a
long term supply agreement with the JV. The recently announced restructure of
these operations involving the consolidation of the three brands into one is
progressing well" said Mr Severin.
Ends.
For further information, please contact:
Josie Ashton, Nuplex Investor Relations, +612 9666 0342 or +61 416 205 234
Nuplex Industries Limited is a leading global manufacturer of polymer resins
with operations in ten countries on four continents and sells its products in
over 80 countries. Polymer resins are essential ingredients in a wide range
of products used every day, from basic necessities, through consumer durables
to luxury goods. Nuplex also distributes raw materials to a wide cross
section of industries in Australia and New Zealand including the chemical,
plastics, general industrial, food and pharmaceutical sectors.
End CA:00210542 For:NPX Type:JOINTV Time:2011-06-24 11:44:16