RadiusPLUS, specialist on-site service provider for pipeline infrastructure works, has acquired the Subterra division of Daniel Contractors for an undisclosed sum.

RadiusPLUS started operations in 2002 as an operating division of Radius Systems, the UK manufacturer of plastic pipe systems for infrastructure markets.  Today it provides site based services for the welding, installation and commissioning of pipelines, together with services for hot tap connections, flow stopping and repair solutions.

Radius PLUS, as a subsidiary of Radius Systems, became part of the POLYPLASTIC Group of Russia earlier in the year, an organisation with a strong presence in the infrastructure markets of Russia and the CIS regions.

The acquisition of the Subterra business adds a portfolio of products and services to RadiusPLUS that include production of epoxy and polyurethane resins, spray coating of metallic pipes, together with the polyethylene pipe renovation technologies known commonly as Subline and Rolldown.

Derek Muckle, Director of RadiusPLUS, commented:

"After 10 years of steady organic growth based on our own innovation efforts, it is fantastic news to announce the acquisition of Subterra, a company with a strong reputation for innovation particularly in the UK water utility markets.

“This acquisition brings a range of technologies which are a good fit to our business and allow us to offer a range of attractive services to our utility and contractor partners both here in the UK and in the emerging Russian and CIS markets.  We are especially pleased to have the skills and contribution from the employees of the Subterra business who will be transferring."

Andy Taylor, CEO of Radius Systems, added:

"Subterra is our first acquisition following the purchase of Radius Systems by the Russian based, POLYPLASTIC Group in February this year. Our new owners have had no hesitation in supporting this transaction which is consistent with our agreed strategy to complement our core pipe and fittings business with closely associated products, services and technologies and in so doing enhancing our value added to our customer base. We are extremely pleased to add the Subterra technologies to our portfolio and look forward to welcoming a skilled and dedicated workforce into the Radius/Polyplastic family."

The UK business units will continue to trade as RadiusPLUS Limited and the Subterra brand will continue to be used in connection with the pipe lining technologies.

Daniel Contractors went into administration in May after financial woes related to the water sector.

Bill Dawson, Joint Administrator of Daniel Contractors Limited and Land & Marine Project Engineering Limited and partner in Deloitte's Restructuring Services team, said:

"We are pleased to secure this deal. It will ensure that the services provided by Subterra continue and helps protect the jobs of Subterra employees. This latest agreement means that the vast majority of jobs at Daniel and Land & Marine have now been safeguarded."