One51 makes €135m US buy

A $150m (€134.7m) purchase by One51 in the US, which it has described as “transformational”, will likely boost hopes for the plastics packaging firm to eventually float on the stockmarket.

One51 is buying Macro Plastics, which makes rigid plastic bulk bins and plastic bulk packaging in three plants in California, Washington and Kentucky. The deal is being transacted through One51’s 67%-owned North American packaging subsidiary IPL.

One51 is paying for the acquisition through IPL senior debt and equity from the IPL shareholders, the company said.

Other shareholders in IPL are Caisse de dépôt et placement du Québec and Fonds de Solidarité des travailleurs du Québec.

Earlier this week, One51 said that financier Dermot Desmond had sold his stake in One51 to Caisse de dépôt et placement du Québec.

The sale of the stake by One51’s largest shareholder to Caisse de dépôt et placement du Québec was “a significant catalyst for the company in its hopes to float on the stockmarket”, said Merrion Capital. The broker said it was “optimistic” on One51’s growth outlook.

Davy Stockbrokers said the acquisition of Macro will significantly boost the size of One51. “It also increases the importance of north America to the group. In 2016, 59% of One51’s revenues were generated in north America (47% of reported revenues); we estimate this percentage now increases to circa 67% on a pro-forma basis,” said Davy Stockbrokers.

One51 Group chief executive Alan Walsh said that the Macro acquisition will mean One51 will become “a significant player in the global rigid packaging container market. This transformational acquisition gives us our first significant presence on the west coast of America,” Mr Walsh said.