Aliaxis acquires Valencia pipe division for $250M
Brussels-based Aliaxis SA acquired the manufacturing division of Valencia, Calif.-based Valencia Pipe Co. for $250 million to expand into the Western United States.
Aliaxis owns Pineville, N.C.-based pipe extruder Ipex USA LLC and it has been increasing its U.S. presence and product line through acquisition in recent years.
The Valencia deal was announced days after Aliaxis's pursuit of primary acquisition target, Uponor Oyj, took a rocky step forward with another purchase offer coinciding with share buys. Aliaxis upped its offer to 25.75 euros per share, which valued the company at 1.87 billion euros ($2.06 billion).
Aliaxis now owns 20 percent of Uponor, which extrudes high density polyethylene and cross-linked PE (PEX) pipe and has U.S. manufacturing sites in Apple Valley and Hutchinson, Minn.
While Uponor remains aloof, the Valencia deal brings Aliaxis two production facilities in Kingman, Ariz., and Walla Walla, Wash., for ABS, PVC and PE pipe as well as a distribution center in Valencia that all primarily serve the residential market.
Valencia will contribute to Aliaxis growth by giving it a "truly coast-to-coast presence," according to Aliaxis CEO Eric Olsen.
"Valencia's plastic pipe and fittings manufacturing division brings two modern plants and a distribution center, providing a highly complementary geographic and product fit with Ipex, Aliaxis's leading brand in North America," Olsen said in a news release.
Ipex manufactures piping systems from ABS, PVC and chlorinated PVC for the municipal, irrigation, industrial, plumbing, mechanical, electrical and telecommunication sectors.
With an estimated $1.26 billion in annual sales, Ipex is the fifth largest pipe, profile and tubing extruder in North America, according to Plastics News.
Uponor ranks 11th with estimated pipe sales of $490 million and Valencia ranks 66th with annual related pipe sales bringing in $51million.
Aliaxis' acquisitions also have included Harrington Corp., a Lynchburg, Va.-based producer of gasketed fittings with 2021 sales of about $75 million, and Israel-based Aquarius Spectrum, a supplier of products for water leak detection and pipe condition assessment.
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