28th February 2022
Peak Pipe Systems in cross border sale to Simona AG
The Yorkshire & North East Corporate Finance team has advised Bridgstock on the sale of Peak Pipe Systems to SIMONA AG of Germany
Peak Pipe Systems Limited (“PEAK”), based in Chesterfield, was a subsidiary of Bridgstock Limited, a family-run holding company, also headquartered in Chesterfield. PEAK is one of the UK’s leading manufacturers of high-quality polyethylene pipe systems. For more than 50 years, PEAK has been providing innovative solutions for the growing UK infrastructure market, with a particular emphasis on electric and water utility sectors, as well as aquaculture. The company employs 66 people and generates revenue of approximately £34 million p.a.
SIMONA AG is one of the leading manufacturers of thermoplastic products, with production facilities and sales offices around the globe, as well as an acknowledged development partner within this field. The publicly listed company’s portfolio includes semi-finished products (sheets, rods, profiles, welding rods), pipes and fittings. SIMONA employs approx. 1,550 people worldwide. The SIMONA Group manufactures 35,000 products in Germany and abroad, offering best-in-class solutions tailored to a wide range of applications in industry, infrastructure, mobility, construction, advertisement and aquaculture. Annual production exceeds 150,000 tonnes.
The acquisition will underpin SIMONA Group’s strategic realignment, the aim being to achieve a strong focus on applications, while supporting its efforts to achieve its growth targets in the infrastructure and aquaculture markets within the EMEA region. Furthermore, the SIMONA Group’s product portfolio in the UK will be expanded significantly as a result of the acquisition, while its overall position in this attractive, segregated market will be further improved.
“PEAK opens up growth potential for us in the infrastructure, aquaculture and renewable energy markets, which we intend to cultivate in a targeted manner with the help of our EMEA business-line organisation launched in 2021. Boasting a solid level of profitability, high growth rates, an experienced management team, dedicated employees and a strong focus on quality and customer satisfaction, the company is a very good fit for SIMONA Group. Our customers will benefit from an extended product range, fast delivery times and system solutions from a single source. We look forward to working together,” says Matthias Schönberg, Chairman of the Board of SIMONA.
Russ Brown, Managing Director of PEAK, welcomed the acquisition: “SIMONA has been a trusted partner of our business for over 30 years. We see synergies at all levels of our organisation – culture, products, know-how, customer focus, can-do attitude – these make us very positive about the future. We are also excited to explain to our customers how much more we will now be able to offer to them. The history of PEAK is a proud one, indeed the entrepreneurial spirit of Eric Bridgstock still drives us every day, we now look forward to the next chapter with enthusiasm and with a smile on our faces!”.
Molly Warwick, a Bridgstock family representative, explained why SIMONA was the ideal fit: “When the Bridgstock family decided to sell the PEAK business the list for potential acquirers was short – based primarily on cultural fit and the passion to take the PEAK business to the next level. In SIMONA Group we are confident that we could not have found a better home for the PEAK business. We now say goodbye to our friends and colleagues knowing they are in safe hands for the future.”
The Yorkshire & North East Corporate Finance team that advised Bridgstock comprised Roger Esler, Matt Spence, and Paul Herriott. Richard May and Conor Boyle at DLA Piper UK LLP in Sheffield provided legal advice. These same advisory teams advised Bridgstock on the sale of utility-tech business, ControlPoint, to Ovarro in March 2021.
Roger Esler commented: “it has been a pleasure to advise Bridgstock on this strategic and synergistic cross border deal to make PEAK part of the SIMONA Group. The strong cultural and commercial fit with the SIMONA Group provides an excellent opportunity for ongoing investment and growth in this fantastic and long-established regional business.”