One51 acquires Californian plastics business in $150m deal
Based in California, Macro Plastics operates three manufacturing facilities in California, Washington and Kentucky, and is the largest manufacturer of rigid plastic bulk bins worldwide. One51 also describes the company as a market leader in providing value-added rigid plastic bulk packaging solutions to the agricultural and automotive sectors.
Macro Plastics had revenues of $76m in 2016, with earnings (EBITDA) of $16m. For the 2017 financial year ending in December, One51 estimates the business will increase revenues to $95m and earnings to $19m, meaning the business has healthy earnings margins above 20%.
Another strategic buy
This latest acquisition by One51 is the latest step in the company’s transformation under chief executive Alan Walsh. Macro Plastics will give One51 a manufacturing footprint on the west coast of the US, which the company sees as a key area for targeted growth.
One51 chief executive Alan Walsh describes the deal as “transformational” for the group.
“This transformational acquisition gives us our first significant presence on the west coast of America, providing us with a leading position in a number of growing market segments. The acquisition also expands our geographic reach, product portfolio and customer base across the growing North and South American markets,” he said.
The acquisition will be funded through a combination of senior debt facilities in One51’s subsidiary company IPL, which is based in Canada. Additional equity for the deal will also come from the IPL shareholders. The deal is expected to be completed in mid-June following regulatory approval in the US.