European plastic pipe system maker Pipelife International is broadening its product range through the acquisition of Norwegian pre-insulated and frost resistant pipe extruder Isoterm AS.
Pipelife Norge AS., the national offshoot of the company owned by Vienna-based building materials producer Wienerberger Group, signed a takeover agreement for the specialist firm with a plant at Ringebu in eastern Norway early this month.
Subject to some closing conditions, the deal with Isoterm’s current owner the Jebo Group, should be completed by August this year, the parties announced. They agreed not to disclose the purchase price.
Isoterm, formed in 1971, has grown to become Norway’s market leader for water and drainage systems with built-in frost protection. The firm employs 35 and achieved annual turnover last year worth about €12m.
Pipelife Norge anticipates “exciting synergies” for expanding Isoterm’s product range.
“We see good opportunities for growth of Isoterm products, both in the cabin market, on transportation projects and elsewhere where there’s a need for frost-proof pipes without the ability to dig down to frost-free depth,” said Pipelife’s sales and marketing director Trond Skogseth.
Wienerberger group CEO Heimo Scheuch stressed the value of the deal: “Frost-resistant pipe is a particularly important issue in Nordic countries, especially in the context of security of supply for remote regions. Pre-insulated pipes can be installed above ground and above the frost line which is the ground that freezes in cold temperatures.”
Isoterm, he added, represents an ideal portfolio fit for Pipelife which is a leading player in Nordic markets.
Pipelife also sees potential to grow the new product business in neighbouring countries, beyond its core Norwegian markets, including in Sweden.
The firm employs 180 in Norway where it operates two pipe system plants in the west at Surnadal and Stathelle south of Oslo. It intends to invest in the Ringebu operation along with both its existing plants, it said.
Pipelife International is a major European pipe producer with subsidiaries in 26 countries.