Sign up for the PlasticsToday NewsFeed newsletter.
May 23, 2023
2 Min Read
Toa55/iStock via Getty Images
Thwarted repeatedly in its attempt to acquire Finland’s Uponor, fluid-management company Aliaxis SA found slight solace, perhaps, when it signed an agreement today to acquire the manufacturing division of US-based Valencia Pipe Co. The $250-million deal expands Aliaxis’ footprint in the key western US market by adding two production facilities and a distribution center in Arizona and Washington.
Based in Valencia, CA, Valencia Pipe produces PVC, ABS, and steel pipes, among other products, primarily for residential applications that meet or exceed plumbing standards. It is a division of VPC Global, which also includes gas tubing and materials in its portfolio of products.
“This acquisition will contribute to our ‘Growth with Purpose’ strategy and will allow us to provide our national customers with a truly coast-to-coast presence,” said 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’ leading brand in North America.”
The deal is subject to regulatory approval, which the companies expect to receive in the coming weeks.
Uponor rejects $2 billion offer
Belgium-based Aliaxis currently owns a piece of Finland’s Uponor, and has been trying to buy the company since last year to, in the words of Aliaxis, “create a global leader in water management solutions.” Last month, it made an unsolicited €1.82 billion ($2 billion) bid, which Uponor rejected on May 22, saying it was “insufficient in light of the company’s values and future prospects,” reported Reuters. In making the all-cash offer initially, Aliaxis said that “Uponor is at a crossroads as a medium-sized player that cannot fully leverage the value of its assets due to the lack of scale.”
Aliaxis generated €4.3 billion in revenue in 2022 producing pipes and fitting systems for the building, infrastructure, industrial, and agriculture sectors. It employs approximately 15,000 people and operates in more than 40 countries.
About the Author(s)
Editor in chief of PlasticsToday since 2015, Norbert Sparrow has more than 30 years of editorial experience in business-to-business media. He studied journalism at the Centre Universitaire d'Etudes du Journalisme in Strasbourg, France, where he earned a master's degree. Reach him at [email protected].
You May Also Like
Compostable Tray Nudges EPS From the Meat CaseFeb 20, 2024|3 Min Read
Syensqo Speaks to Sustainable Mobility and Technology Collaborations at JEC 2024Feb 20, 2024|3 Min Read
Bioplastics News StreamFeb 20, 2024|1 Min Read
Debunking the ‘Fraud of Plastic Recycling’Feb 20, 2024|3 Min Read