Deloitte Ireland’s M&A Team acts as lead advisor to One51 on the acquisition of Macro Plastics, Inc for USD$150 million
Deloitte Ireland’s M&A Team is pleased to announce that it has acted as lead advisor to One Fifty One plc (“One51” or “the Group”), a leading rigid plastics manufacturer for the packaging, environmental containers and industrial products sectors. Today One51 announced that it has agreed to acquire the entire share capital of Macro Plastics, Inc (“Macro”), through its subsidiary IPL Inc. (“IPL”) for a total Enterprise Value of USD$150m.
Macro is the largest manufacturer of rigid plastic bulk bins worldwide and is a market leader in the value-added 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. USD$95m and c. USD$19m respectively. Macro also 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 the 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.
Commenting in the One51 press release, Alan Walsh, Group Chief Executive, said:
“The acquisition of a world class business such as Macro represents a further significant step forward in One51’s continued growth in the global rigid plastic packaging market. Macro brings exciting opportunities for One51 and enables us to enter growing market segments in leadership positions and also allows us to further expand our geographic reach, product portfolio and customer base across the growing North American market. Furthermore, the combination of these three platforms - Macro, IPL and OPG - will lead to the creation of a significant global rigid packaging container business. 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 to develop Macro further so as to fully capitalize on the range of opportunities now available to the combined business.”
The acquisition is expected to close by mid-June 2017 following regulatory clearance.
Deloitte advised on the acquisition, with legal advice provided by Alston & Bird in New York.
Commenting on the acquisition, Anya Cummins, M&A Partner in Deloitte said:
“It has been our pleasure to assist One51 execute on its strategy of becoming a leading global player in the rigid plastics market. The acquisition offers significant opportunities for both IPL and Macro to expand outside their respective core markets, providing both entities with access to new markets and customer opportunities heretofore not available. In time we believe that this acquisition will be seen as transformative for the overall group”
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