Straight purchases UK operations of Greek bin firm

These are now set to transfer to one of Straight's main manufacturing partners, allowing UK production to recommence within the next few weeks, with the bins being jointly branded 'Straight' and 'Helesi'.

Straight, which has previously worked as a distributor for Helesi products in the UK, will also assume Helesi's position supplying UK and Irish markets, as well as taking over its existing customer contracts and supply agreements.

And, it will also now become the exclusive UK and Irish distributor and licensee for Helesi plastic four-wheeled bins and other products, as well as having the right of first refusal to import and distribute any new products developed by Helesi.

While Straight now holds a share of between 10% and 15% of the UK wheeled bin market, the company's chief executive Jonathan Straight, highlighted the importance of the Helesi acquisition in terms of giving the firm its own branded line of wheeled bins for the first time.

“We have been a distributor of Helesi products in the UK for a number of years and our customers have always been very satisfied with their high quality,” he said.

“We are delighted that we are now able to service these markets with a proprietary product, manufactured locally and in line with our proven business model which prides itself on quality, innovation and market leadership,” he added.

In particular, Straight has said it believes the purchase will allow it to generate margins for wheeled bins that more in line with its “core container” range, as well as helping it to “significantly strengthen” its position in its core markets.

Finance

In terms of finance for the purchase, Straight revealed that it was being part funded by a loan of £0.75 million from its bank Lloyds TSB, with the remainder being paid from its existing cash resources.

The company is making an initial payment of £0.45 million, followed by a further £0.45 million and it will then pay the balance in 10 equal monthly instalments beginning on April 30.

It will also pay an ongoing royalty for using the Helesi brand on jointly-branded products.