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June 2017

Significant U.S. Acquisition of Macro Plastics Inc. by One51


One Fifty One plc (One51), a leading rigid plastics manufacturer for the packaging, environmental containers and industrial products sectors, has agreed to acquire the entire share capital of Macro Plastics Inc. through its subsidiary IPL Inc. for a total Enterprise Value of $150 million. ‘

 

Macro is the largest manufacturer of rigid plastic bulk bins worldwide and is a market leader in providing valueadded rigid plastic bulk packaging solutions to the agricultural and automotive sectors, and operates some of the largest bulk machines in North America.

 

Headquartered in Fairfield, California, Macro operates three manufacturing facilities in California, Washington and Kentucky with dedicated design and testing capabilities together with an established international sales network.

 

It is estimated that Macro’s revenues and pro forma Adjusted EBITDA for the year ended 31 December 2017 will amount to c. US$95m (2016; US$76 m) and c. US$19m (2016; US$16m) respectively. Macro offers a significant footprint for IPL’s expansion in the strategically important US 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. In particular, Macro provides IPL with a significant presence on the US West Coast, a key growth target of the Group.

 

The acquisition is being funded through a combination of IPL senior debt facilities and additional equity from the IPL shareholders. Bank facilities are provided by a syndicate of nine leading financial institutions with National Bank of Canada, the incumbent lead bank to IPL for over 50 years, acting as lead arranger.

 

Alan Walsh, Group Chief Executive, One51, said: “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. The acquisition also expands our geographic reach, product portfolio and customer base across the growing North and South-American markets.

 

“The integration of Macro with IPL and OnePlastics Group (OPG) will make One51 a significant player in the global rigid-packaging container market. We welcome Warren MacDonald and his team in Macro to the wider One51 Group and we look forward to working closely with them in the years ahead.”

 

The acquisition of Macro will be earnings enhancing from 2017 and follows the November 2016 acquisition of Encore Industries Inc. The integration of Encore is progressing well. The acquisition is expected to close by mid-June 2017 following receipt of US regulatory clearance.

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