Law firm Walker Morris has acted for the environmental products and services group, Straight Plc on its acquisition of Hull-based injection moulding specialist Dyro in a £2.9 million deal.
The move sees Leeds-based Straight Plc, acquiring the business which trades as Powell Plastics and is already Straight's leading injection moulding partner for its products, operating more than 20 injection moulding machines.
The £2.9 million deal consists of an initial cash payment of £970,000 with two further cash payments of £970,000 over a further two years. The initial payment has been funded through a loan of £1.5 million from the group's lending bank, Lloyds TSB. The balance of the loan is being used to fund Dyro's working capital requirements.
Debbie Jackson, the corporate partner who led the legal team at Walker Morris said:
"We have had a long standing relationship with Straight Plc, having previously advised Straight on its admission to AIM in 2005, its acquisition of Blackwall, the UK's largest supplier of home composters and water butts in 2005 and more recently on the acquisition of the UK manufacturing operations of the Helesi plc group in a £1.65 million deal earlier this year. This strategic acquisition of Dyro will allow Straight to strengthen its position and boost the group's future development in the market.
Jonathan Straight, chief executive of Straight Plc, commented: "The evolution of Straight's business model into direct production further strengthens its position in its core market place and will act as a springboard for further vertical integration as well as future acquisitions".