Straight made its announcement to the London Stock Exchange in the wake of an increase in its share price of more than 10% to 62.5p.
The company said: Straight plc notes the recent rise in the Company’s share price and announces that it has received a preliminary approach from One51 plc regarding a possible acquisition of the entire issued and to be issued share capital of Straight. There is no certainty that this approach will lead to an offer being made for the Company.
Under takeover and merger rules, One51plc, whose activities include the production of wheeled bins, now has one month either to announce a firm intention to make an offer for Straight in accordance or to announce that it does not intend to make an offer.
Straight plc is based in Leeds with a manufacturing facility in Hull. Earlier this week Straight reported that revenue is growing in line with market expectations. Group EBITDA is also anticipated to be in line with market expectations and has held up well in the second half of the year. In addition, the Group is pleased to report that 2014 has begun well with the award of two major contracts totaling more than 2 million revenue.
Contracts
These contracts prompted Jonathan Straight, chief executive of Straight to comment: Our focus remains on profitably growing revenues in all of our diverse markets, and our recent contract wins and future pipeline provide a strong foundation for the year ahead. These wins highlight our market leading expertise in the provision of stellar recycling products and we look forward to maintaining momentum in the year ahead.
Dublin-headqurtered One51 operates a portfolio of businesses in the areas of Environmental Services Renewable Energy and Injection Moulding Plastics. One51 traces its history to the Irish Agricultural Wholesale Society Ltd (the Society), established in 1897 to function as a wholesale commodity trading company on behalf of various farmer co-operatives. In 1988 IAWS Group plc was spun off from the Society in a transaction that saw IAWS acquire most of the Society’s assets.
In 2005 the Society decided to use some of its remaining assets to fund an investment company and One51 was created. The following year One51 registered as a plc and in February 2007, following a share exchange with Society shareholders, One51 became an independent entity.
One51 Plastics has injection moulding businesses in Ireland and UK, with a smaller manufacturing facility in China. The company says that these businesses operate in niche sectors typified by high volumes, outsize parts, bespoke tooling and high tonnage injection moulding machines. Products include wheeled bins, paint cans, bread trays, animal feed containers and plastic casings.
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