One51, the environmental and plastics group spun out of IAWS, has acquired a second plastics business based in North America called Encore Industries for $35m (€31.5m). The acquisition was made through One51’s Canadian subsidiary IPL.
Encore is a producer of rigid plastic packaging products for the North American market, with manufacturing facilities situated in the US states of Ohio, Georgia and Minnesota. Encore is forecast to report revenues of $53.8m (€48.5m) and earnings (EBITDA) of $5.8m (€5.2m) for its 2016 financial year, giving the group a very healthy earnings margin of 10.8%.
The deal, which values Encore at six times earnings, will be funded through a combination of IPL’s existing cash resources and debt.
Additionally, One51 has announced a €24m capital investment programme for its IPL subsidiary that will see the expansion of IPL’s production capacity in both Canada and the US. The group is eyeing growing consumer demand for the plastics products it manufactures as well as tapping into new market segments in the large US market.
Transformed
Over the past eight years, One51 has been totally transformed from the entity that was originally spun out of the Irish Agricultural Wholesale Society (IAWS) into the environmental and plastics business it is today.
Chief executive Alan Walsh has been extremely active in turning the business around via strategic acquisitions and non-core disposals. The acquisition of a 67% controlling stake in the Canadian company IPL back in July 2015 was transformative for One51, effectively doubling the group’s turnover to the region of €450m.
The group has made a number of acquisitions in environmental businesses in the UK in the last 18 months, as well as investing €8m in a new facility at Little Island in Cork that will supply plastic packaging to the Irish food sector.
One51 has also divested a number of businesses seen as non-core, including the Irish Pride bakery business and most recently its metals recycling business in Ireland. Walsh had intended to float One51 on the stock market as a means to access new capital, but these plans were shelved in April this year after objections from certain large shareholders, most notably financier Dermot Desmond.
One51, the environmental and plastics group spun out of IAWS, has acquired a second plastics business based in North America called Encore Industries for $35m (€31.5m). The acquisition was made through One51’s Canadian subsidiary IPL.
Encore is a producer of rigid plastic packaging products for the North American market, with manufacturing facilities situated in the US states of Ohio, Georgia and Minnesota. Encore is forecast to report revenues of $53.8m (€48.5m) and earnings (EBITDA) of $5.8m (€5.2m) for its 2016 financial year, giving the group a very healthy earnings margin of 10.8%.
The deal, which values Encore at six times earnings, will be funded through a combination of IPL’s existing cash resources and debt.
Additionally, One51 has announced a €24m capital investment programme for its IPL subsidiary that will see the expansion of IPL’s production capacity in both Canada and the US. The group is eyeing growing consumer demand for the plastics products it manufactures as well as tapping into new market segments in the large US market.
Transformed
Over the past eight years, One51 has been totally transformed from the entity that was originally spun out of the Irish Agricultural Wholesale Society (IAWS) into the environmental and plastics business it is today.
Chief executive Alan Walsh has been extremely active in turning the business around via strategic acquisitions and non-core disposals. The acquisition of a 67% controlling stake in the Canadian company IPL back in July 2015 was transformative for One51, effectively doubling the group’s turnover to the region of €450m.
The group has made a number of acquisitions in environmental businesses in the UK in the last 18 months, as well as investing €8m in a new facility at Little Island in Cork that will supply plastic packaging to the Irish food sector.
One51 has also divested a number of businesses seen as non-core, including the Irish Pride bakery business and most recently its metals recycling business in Ireland. Walsh had intended to float One51 on the stock market as a means to access new capital, but these plans were shelved in April this year after objections from certain large shareholders, most notably financier Dermot Desmond.
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