Rhondda based UPVC Direct has completed the acquisition of family owned Principality Plastics Warehouse in a deal part-funded with a significant loan and equity investment by the Development Bank of Wales that will see the business retained in Wales.
Established in 1992 by John Peters, Principality Plastics Warehouse is a family-run business with warehouses in Cardiff, Gloucester and Swansea. Supplying plastic building supplies to the trade and DIY markets, Principality has a turnover of £9 million. All 40 staff will be retained by UPVC Direct, the building and maintenance supply company established by entrepreneurs Paul Ragan and Matthew Epps in August 2021.
With an ambitious growth strategy focussed on acquisition and customer integration, UPVC Direct will use some of the funding from the Development Bank to invest in an environmentally friendly range of products and upgrade technology to support business growth.
John Peters, founder of Principality said: “As a family, we’re so proud of our team for everything they have achieved. The time has come to retire safe in the knowledge that the UPVC Direct team will be a safe pair of hands to take over, particularly as they have similar values and a great reputation. I would like to sincerely thank all the staff at Principality, past and present, my previous business partners and my family for all their support and hard work over the years in making the company what it is today. I wish the team well and look forward to seeing what will be achieved moving forward.”
Paul Ragan, Founder of Motaquote Insurance and Managing Director of UPVC Direct said: “I’m delighted with the acquisition of Principality Plastics Warehouse and grateful to our advisers and the Development Bank for working with us to provide the funding necessary to get the deal over the line and underpin the future growth of the business. Principality is a long-standing and very credible business with a loyal and ambitious workforce. We look forward to working with everyone involved at the company and continuing the great work of previous years.”
Deputy Fund Manager Jo Thomas worked on the deal with Senior Investment Executives Navid Falatoori and Ruby Harcombe from the Development Bank. Jo said: “This has been a team effort and together we have focussed on putting together a funding package with equity from our Wales management Succession Fund that is ideal for acquisitions and facilitating management succession. The mix of debt and equity secures the future of Principality Plastics in Wales and provides additional headroom for growth.
“Like many family owned businesses, John wanted to manage his exit in a way that will protect both the legacy and the future of Principality. The business has an impressive track record but also opportunity for further expansion as part of the UPVC Direct Group given the product synergies and opportunities to cross-sell. With a highly credible and experienced management team, we have no doubt that there is a successful future ahead.”
Lewis Silkin and GS Verde advised UPVC Direct and Principality on the deal. Haines Watts and Geldards acted for the Development Bank of Wales.
Funding for the acquisition came from the £216 million Wales Business Fund which is financed by the European Regional Development Fund and the Welsh Government along with the £25 million Wales Management Succession Fund that is financed by Welsh Government and Clwyd Pension Fund.