Oystertec buys IBP

Oystertec will acquire International Building Products (IBP), part of the European plumbing division of engineering group Delta plc for GBP28.3 million. The company said it is financing the deal through a GBP30.6 million placing and open offer as well as securing a GBP20 million asset-based debt facility from specialist lender Burdale Financial.

The purchase will allow Oystertec, the AMI-listed technology innovation company, to distribute its product range alongside IBP’s range.

“This financing arrangement demonstrates the flexibility that asset-based finance can bring to companies to support their expansion plans,” said Burdale chief executive Dennis Levine “It highlights the broad number of applications of asset-based finance, for both private and publicly listed companies.”

IBP manufacturers and distributes copper-based fittings for pipe connections used in water supply and heating systems in Europe.

For the 12 months to December 31 2000, IBP made an operating loss of GBP1 million on sales of GBP91.2 million. And in the six months to June 2001, the operating loss was GBP0.5 million on sales of GBP44.8 million. At that time, the net asset value of IBP was GBP63.6 million.

Oystertec said it plans to improve the operating performance of IBP through cost cutting and introducing a strong commercial team.