A statement from Straight said that the company had raised 5 million, before expenses, by way of a placing of 3.8m new ordinary shares at 130p per share. The money raised will be used for the acqusition of Blackwall shares, subject to approval from Straight shareholders at a special meeting on January 17.
However, the company is not describing the deal as a purchase of Blackwall, but instead is calling it a “merger”. Blackwall describes itself as “Britain's leading supplier of compost bins with sales of over one million composters to date”.
James Newman, chairman of Straight, commented: “I believe that the merger of
Straight and Blackwall
will significantly benefit our shareholders as well as the customers, suppliers and employees of both companies. It will create a company with significant scale to take advantage of the growing market for the company’s products.
Admired
Jonathan Straight, Straight’s chief executive added: “I have admired the Blackwall business for many years. Max Davidson and Grant Blakemore have built up an excellent organisation, delivering the best in home composting initiatives as well as innovative recycling solutions.
“The merger gives both our customers access to the best elements of both the Straight and Blackwall brands. For suppliers, it means the potential to share in the increased volumes and continual growth in the market for our companies’ products. For the staff of both organisations there will be more opportunities and rewards.”
Synergies
Max Davidson, joint managing director of Blackwall, said: “The obvious synergies between the two companies make the merger of the two organisations an exciting prospect. The drive and energy that Jonathan Straight brings to his business links perfectly with the marketing, customer service and operational skills we have developed at Blackwall. Both Grant Blakemore and I believe that this merger will be in the best interests of all our customers, suppliers and staff and offers significant opportunities for all concerned.”
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