The boards of One51 and Straight have reached agreement for One51 to buy Straight for £10.7 million.
Bin and container business Straight’s entire share capital will be bought at a price of 78p per share by the Irish environmental services and plastic injection moulding company.
Subject to Straight shareholder approval, the board of Straight is recommending that the offer is accepted.
Founded by Jonathan Straight 21 years ago, Straight has been particularly successful in the recycling and waste management sector where is has provided plastic wheeled bins and containers to councils and others.
Jonathan Straight will step down from the company once the acquisition is completed.
One51 Group chief executive Alan Walsh said: “The board of One51 Group looks forward to the integration of Straight within its existing plastic 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 offering, 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 growth to our shareholders.”
Straight chairman James Newman 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.”