One51 acquires US plastics company for $150m

Plastics manufacturer One Fifty One has agreed to acquire the entire share capital of Macro Plastics, a manufacturer of rigid plastic bulk bins, for a total value of $150 million (€134.8 million).

The acquisition by Dublin-headquartered One51, through its subsidiary IPL, is a “significant step in One51’s strategy to become a leading global player in the rigid plastics market”, according to a statement from the group. One51 holds a 67 per cent majority shareholding in IPL.

Macro Plastics currently operates three manufacturing facilities in the United States in California, Washington and Kentucky. The group estimates that Macro's revenues to the end of this year will amount to roughly $95 million, while adjusted earnings before interest, taxes, depreciation and amortisation are expected to reach $19 million.

Significant presence

The acquisition is being funded through a combination of IPL senior debt facilities and additional equity from the IPL shareholders, said the statement.

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"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," said Alan Walsh, One51 chief executive.

“The acquisition also expands our geographic reach, product portfolio and customer base across the growing North and South-American markets.

“The integration of Macro with IPL and OnePlastics Group (OPG) will make One51 a significant player in the global rigid-packaging container market,” he concluded.

Davy stockbrokers backed up that sentiment. In a note to investors, they said: “The acquisition of Macro Plastics for $150 million, through its IPL subsidiary, represents another significant step forward for One51. Macro is a leading global manufacturer of rigid plastic bulk bins and in the provision of rigid plastic bulk packaging solutions to the agricultural and automotive sectors.”

The acquisition is expected to close by mid- this year and will be earnings enhancing from 2017 according to the group.