One51 looks to raise €20m for buyouts
Bread to nuclear waste investment group One51 is examining plans to raise around €20m from investors to fund potential acquisitions.
"The group is currently assessing a number of options available to it to raise this additional capital while maintaining a conservative financing structure appropriate to the nature and cycle of the underlying core businesses," according to sources.
One51 has returned to profit for the first time since 2006, following a major restructuring led by chief executive Alan Walsh. It is understood that Walsh's focus at One51 has now switched from stabilising the company to the "growth of shareholder value", according to sources. One51 is understood to be looking at up to three potential acquisitions as it seeks to boost its hard-drive casing and plastics businesses. It is also looking to grow its hazardous materials division. Previously, the group indicated it may seek about €20m for new deals.
The group is expected to report after-tax profits of over €7m in coming days, as sales touched €300m. One51's plastics division – which has pioneered an innovative baby milk bottle lid – is seen as the key driver of the recovery.
The return to profitability comes after three years of heavy lifting, which saw the then debt-laden buyout firm slash its borrowings to €40m, its lowest levels since 2005. One51 has also just agreed a new €75m four-year banking facility to give it even more headroom. Debt levels were halved over the past year as One51 used a €23m special payout from its shareholding on NTR to repay borrowings.
The company is close to completing its programme of disposing of non-core assets.
Two weeks ago, One51 also inked a "conditional contract" for the near €30m sale of its Irish Pride bread business.
Sunday Indo Business