Dublin-based One51 plc has had its purchase of British trash bin maker Straight plc cleared by the United Kingdom's Competition and Markets Authority.
Once the deal has been finalized, Jonathan Straight, Straight's chief executive, will step down but will be retained on an 18-month contract as a consultant. The deal is valued at 10.7 million British pounds ($18.2 million).
Explaining the reasons for the Straight acquisition, One51 noted: “Having established itself as a leading player in the U.K. wheeled bin market via its subsidiary which traded as MGB Plastics, One51 wants to build upon this success by undertaking complementary strategic acquisitions in the UK.
“One51 believes that an acquisition of Straight would be a good strategic fit in this regard. In particular, a combination of MGB Plastics and Straight would create a leading specialist injection molding group in the U.K.”
One51's plastics group includes MGB, an injection molder of trash and recycling bins in Rotherham, England, as well as structural foam maker AAC of Tamworth, England, and injection molders Protech Performance Plastics of Cork, Ireland, and Thomac Engineering of Shannon, Ireland.
Straight faced some tough times in recent years but its 2013 results showed an increase in earnings before tax to 2 million pounds ($3.38 million) compared to 750,000 pounds ($1.27 million) for 2012.
The Leeds, England-based company molds trash and recycling bins as well as home composting containers.
Commenting on the deal, Alan Walsh, chief executive of One51, said: “The board of One51 Group looks forward to the integration of Straight within its existing plastics division. We aim to support Straight in its growth plans by providing the security of a strong balance sheet and continuing to innovate the business model through investment in technology and machinery.
“The combination of One51 and Straight is an exciting opportunity as it adds considerable breadth, depth and scale to One51's existing offerings, creating a leading specialist injection molding group in the U.K. which can then grow into other European markets,” added Walsh.
“This acquisition will also drive growth for the enlarged group driving further value to our shareholders.”