Straight Enters Production As It Buys Dyro For GBP2.9 Million
16 August 2010 - 5:56PM
Dow Jones News
Recycling products and services firm Straight PLC (STT.LN) said
Monday it has bought its injection moulding partner for GBP2.9
million, marking its first entry into making its own products.
Straight will pay an initial GBP970,000 for Dyro Holdings
Ltd.--which trades as Powell Plastics--and two further cash
payments of GBP970,000 on each of the first and second
anniversaries of completion.
The initial payment has been funded through a GBP1.5 million
loan from its lending bank, Lloyds Banking Group PLC (LLYO.LN). The
balance will be funded from cash generated as a result of the
acquisition.
Hull-based Dyro operates more than 20 injection moulding
machines. Straight believes the addition of Dyro's manufacturing
capability will boost profitability and strengthen its position in
its main markets.
Dyro has been a supplier to Straight for a number of years but
trading between the two has increased considerably in the last six
months as Dyro operates the wheeled bin production equipment
acquired by Straight from Helesi in March.
Straight said Dyro's location will also provide it with a new
U.K. distribution hub and an excellent base for its growing exports
business.
-By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298;
hannah.benjamin@dowjones.com
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