One51 confirms stock market plan as revenue and profits soar
Irish plastics group One51 has confirmed it is hoping to float on the stock market within the next 12 to 18 months.
The company is likely to target Toronto for its flotation, with much of its business now focused on North America.
"A stock market listing would provide shareholders with a liquid market for their shares and would facilitate raising further equity if necessary to support future growth," the company said yesterday as it released a strong set of interim results.
The floatation could put a valuation of more than C$1bn (€670m) on One51.
Revenue at the revitalised One51 jumped 32.4pc to €225.8m in the first half of 2017.
Earnings before interest, tax, depreciation and amortisation (EBITDA), excluding discontinued operations, soared 31pc to €32.4m in the period.
The company said that its performance in the first six months of the year was boosted by strong organic growth in IPL, its Canada-based North America plastics unit.
A six-month contribution from Encore Industries, which One51 acquired last November for €32m, also supported the first-half performance.
One51, whose chief executive is Alan Walsh, has completed its transformation from being a waste management firm to one that now focuses exclusively on the manufacture of rigid plastics used for packaging, environmental containers and industrial products.
During the first half of this year, One51 sold a 75pc interest in ClearCircle Environmental's all-Ireland specialist environmental services (SES) business for €22.2m. It retained a minority stake under a put and call option agreement. ClearCircle's SES operations in the UK were sold in April for £16m (€17.2m).
In June this year, One51 bought US-based Macro Plastics in a deal that placed a $150m enterprise value on the business.
The details of that acquisition were revealed just a day after One51 announced that billionaire financier Dermot Desmond had sold his near 23pc stake in One51 to Canadian fund manager giant Caisse de depot et placement de Quebec (CDPQ).
One51 acquired its 66pc stake in IPL in 2015 for €201m. CDPQ owns 22pc of IPL. It's been previously reported in the 'Sunday Independent' that One51's flotation plan will begin with a merger of its subsidiary IPL in Canada and its plastics business OPG in Ireland and the UK. In tandem, a refinancing of the entire group is expected to take place.
One51 will also buy out the 33pc stake in IPL which it does not already own.
In turn, IPL's two Canadian shareholders - CDPQ and Fonds de Solidarite - will shift their shareholder interest to the One51 entity.
Mr Walsh said that given the "significant progress in the business", the One51 board has recommenced exploring a possible stock market flotation. Shares in One51 are currently traded on the so-called grey market.
Mr Walsh said the group's IPL business in both the US and Canadian markets continues to perform ahead of expectations.
In Europe, UK earnings were in line with expectations despite being adversely affected by the fall in the value of sterling, he added.
One51 ended the first half of the year with net debt of €261.1m and total assets of €634.2m.