TPT September 2009

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Industry News
18 September 2009 ›
European official distributor
impeder cores
U.S.M. Mazzucchelli S.r.l.
USM provides top quality products
and services to the Tube and Pipe
industries worldwide. We have a
wide range of top quality items
and devices for tube
manufacturers’ requirements.
Once our products have been
chosen, we can immediately
deliver them from our stock.
Ferrite cores Impeders
Carbide inserts
HSS blades Guillotine blades Other....
Ceramic rolls Inside tube scarfing Cutting rings
Tool holder Copper inductors
Fibreglass tubes
V.le Lombardia,4 - 20052 Monza - MI - Italy
Tel. +39/039.387282 - 2301687 Fax +39/039.387633
ONE in nine companies in the UK pipes and
fittings industry could change ownership as
a result of the current economic climate,
claims a new study by financial analysts
Plimsoll. With a surprising number of cash-
rich competitors waiting in the wings, the
market could be set for a prolonged period
of consolidation, the report says.
David Pattison, author of the Plimsoll
Industry Analysis – Pipes and Fittings, said:
“In the current climate, there are simply too
many companies chasing too little market.
With many directors eyeing the exit doors
and highly leveraged buyouts consigned to
history, it is a buyers’ market for cash rich
companies.”
“In analysis we have identified 76 companies
that have a sizeable cash reserve sat on
their balance sheets that, due to record low
interest rates, is generating nothing.
“One company has a £78mn cash pot
– a whopping 80% of turnover. These
companies are now in the position to buy up
large chunks of market share at rock bottom
prices and make that money work for them.
“The UK pipes and fittings market is
still regarded as one of the UK’s most
fragmented sectors. In our report we
analysed 297 companies with a turnover of
£1mn per annum and have picked 51 that
are primed to be taken over. Buying one of
these represents a massive opportunity.”
The Plimsoll Industry Analysis – Pipes and
Fittings hopes to explain which companies
are set to be buying and who will be
selling.
Readers of Tube & Pipe Technology are
entitled to a £50 discount for the report.
Quote reference PR/MT40.
Plimsoll Publishing – UK
Fax: +44 1642 626410
Email:
Website:
UK pipe industry in ‘acquisition gold rush’
 The UK pipes and fittings industry is set for an unprecedented period of acquisition activity, a new report claims