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Jan 21, 2024Aliaxis Goes West, Expands US Footprint with Valencia Pipe Acquisition
May 10, 2023Norbert Sparrow | May 23, 2023
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.
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.
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