Straight cuts new deal for bin company
The Leeds-based company said it will now pay £2.42m for Dyro, instead of £2.9m, after reaching an agreement on warranties and indemnities.
Straight bought Hull-based injection moulding firm Dyro – trading as Powell Plastics – to gain control of its manufacturing under a much-vaunted ‘vertical integration’ strategy.
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Hide AdIt paid an initial £970,000 but withheld later payments after uncovering a series of problems. Dyro was also hit by soaring plastics prices, which hit profits at its new owner.
Straight will now pay the outstanding balance of £1.45m in instalments over five years.
“We are delighted to have reached an amicable agreement with the vendors of Dyro Holdings Limited concerning both our warranty claims and the timing of further payments due,” said chief executive Jonathan Straight.
Straight said the revised terms will not affect its net assets.