CVC Capital Partners in December announced that is in advanced negotiations to acquire 50% of Wavin, Europe’s largest manufacturer of plastic pipe systems, from Shell Petroleum, which is currently divesting its vinyl activities. CVC did not disclose the price it plans to pay, but industry observers suggest it could be as much as DFl 700 million (ecu 316 million).
Wavin is based in the Netherlands and has additional manufacturing facilities in France, Germany, Poland, Scandinavia, Switzerland and the UK; the group employs a total workforce of 4,500 people at more than 30 sites in 21 European countries. Wavin has a 22% share of the European plastic pipe and fitting systems market and expects sales of DFl 1.7 billion in 1998; its net profits in the half year to June 1998 were DFl 19.3 million, representing a 20% increase on 1997’s interim results.
Waterleiding Maatschappij Overijssel, a Dutch regional water board, will retain its 50% stake in Wavin.
CVC chairman Michael Smith said the private equity group intends to use Wavin as a platform for further acquisitions and will also seek opportunities for strategic alliances.