One51 agrees to pay $150m for America's Macro Plastics
One51 has agreed to pay a $150m (€134.2m) enterprise value to buy US-based Macro Plastics. The Irish firm is making the acquisition via its Canadian IPL subsidiary.
The acquisition comes just a day after One51 said that billionaire businessman Dermot Desmond had sold his near 23pc stake in the company. Mr Desmond held his stake via his IIU vehicle and sold the holding to Canadian fund manager giant Caisse de depot et placement de Quebec (CDPQ).
Headquartered in California, Macro makes rigid plastic products for the agricultural and car sectors and has plants in California, Washington and Kentucky.
It's believed that One51 has also been sizing up acquisitions in the plastics sector in Europe. One51, whose chief executive is Alan Walsh, said the Macro acquisition offers a "significant footprint" for IPL's expansion in the strategically important IS market and the growing South American market".
"Macro's product portfolio is complementary to IPL's existing business and is a significant step in One51's strategy to become a leading global player in the rigid plastics market," added the company. "In particular, Macro provides IPL with a significant presence on the US west coast, a key growth target of the group."
Macro's revenues for current calendar year are estimated to hit $95m (€85m), compared to $76m last year. Pro forma adjusted earnings before interest, tax, depreciation and amortisation are likely to be $19m (€17m), versus $16m last year.
One51 acquired a 66pc stake in Canada-based plastics maker IPL in 2015 for €201m. CDPQ owns 22pc of IPL. One51 said the acquisition of Macro is being funded through a combination of IPL senior debt facilities and additional equity from IPL shareholders. "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 Mr Walsh.