Straight snaps up Helesi's UK business

Straight, the UK's leading supplier of recycling containers, said today it has bought the business and certain assets relating to the UK manufacturing operations of Helesi for 1.65m in cash.

Leeds-based Straight has bought the assets, including moulds and presses, relating to the manufacture of Helesi's most popular wheeled refuse and recycling containers in the UK.

Production of these items will be carried out by one of Straight's established manufacturing partners, it said.

Straight will assume Helesi's position supplying the UK and Irish markets and take over existing contracts and supply agreements. The products will be jointly branded Straight and Helesi.

The deal consists of an initial payment of 450,000 on exchange, a further 450,000 on completion and the balance paid in ten equal monthly instalments from on 30 April.

Straight said the initial payments would be part funded by a loan of 750,000 from its lending bank, Lloyds TSB, with the remainder paid from its existing cash resources.

Straight will also pay Helesi an ongoing royalty for the use of its brand on jointly branded products.

Straight has a 10 to 15 per cent share of the UK wheeled bin market. It believes the deal will enable it to generate margins on wheeled bins more in line with those which it has on its core proprietary container range.

It has also formed a "strategic alliance" with Helesi to become the exclusive UK and Irish distributor and licensee for other Helesi products including plastic four -wheeled bins. Straight will also have the right of first refusal to import and distribute any new products developed by Helesi.

Jonathan Straight, chief executive of Straight, said: "We have been a distributor of Helesi products in the UK for a number of years and our customers have always been very satisfied with their high quality.

"We are delighted that we are now able to service these markets with a proprietary product, manufactured locally and in line with our proven model which prides itself on quality, innovation and market leadership."