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January 2005
BLACKWALL MERGES WITH STRAIGHT
In a move that brings together two of the largest suppliers of
specialist containers to the waste management and recycling sector,
AIM listed Straight plc has conditionally agreed to acquire Blackwall
Limited for a mixture of cash and shares and intends to merge
the two
businesses.
The purchase was approved at a meeting of shareholders on 17
January 2005.
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Both companies are suppliers of container solutions
for source separated waste to local authorities, waste management
companies, community sector organisations and private sector businesses.
Both also supply end-users with a comprehensive range of environmentally
friendly home and garden products, including compost bins and water
butts, often through partnerships with local councils and water
companies.
The merger creates a £20 million plus business. Straight
is the biggest brand in the kerbside box market, while Blackwall
leads the home composting sector.
Straight plc was formed in 1993 and floated on the AIM market
towards the end of 2003. Within a year the company had launched
a specialist materials handling
division, providing plastic pallets, supply chain containers and new crates
and baskets to the bakery, beverage and dairy sectors. Blackwall
Limited, also based
in Leeds, is a privately owned company formed in 1995. Following the merger
the Blackwall name will be retained for the Group’s retail
business.
Commenting on the announcement Straight’s chief executive Jonathan Straight
said: “I have admired the Blackwall business for many years. Max Davidson
and Grant Blakemore have built up an excellent organisation, delivering the
best in home composting initiatives as well as innovative recycling solutions.
” The merger gives both our customers access to the best elements of both
the Straight and Blackwall brands. For suppliers, it means the potential to share
in the increased volumes and continual growth in the market for our companies’ products.
For the staff of both organisations there will be more opportunities and rewards.
” As we enter 2005 as the market leader in kerbside recycling containers
and home composters, we look forward with confidence to growing the combined
business in the future.”
Max Davidson, joint managing director of Blackwall, said: “The obvious
synergies between the two companies makes the merger of the two organisations
an exciting prospect. The drive and energy that Jonathan Straight brings to
his business links perfectly with the marketing, customer service and operational
skills we have developed at Blackwall. Both Grant Blakemore and I believe that
this merger will be in the best interests of all our customers, suppliers and
staff and offers significant opportunities for all concerned.”
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