The sale of Straight plc to One51 Plastics Holdings Limited has been agreed between the parties. In a statement made by One51, it says that the “consideration payable for each Straight share shall be 78 pence in cash”, which puts the valuation of the company at £10.7m.
Already part of the One51 group is another wheeled bin and kitchen caddy manufacturer in the shape of MGB Plastics, meaning the acquisition will further strengthen the company’s position in this competitive market place.
Commenting on the agreement to buy the business, Alan Walsh, chief executive of One51 Group, 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 moulding group in the UK which can then grow into other European markets. This acquisition will also drive growth for the Enlarged Group driving further value to our shareholders.”
James Newman, chairman of Straight, said: “The board of Straight is pleased to have agreed terms with One51. We consider that the offer represents an attractive premium to the average share price of Straight in the period prior to the announcement of a potential offer. We welcome the opportunity to join One51 which we believe will bring immediate and long term benefits to our clients and staff.”
The deal is awaiting final shareholder approval.