Gordons advises on £1.65m sale of Helesi’s Uk wheelie bin manufacturing business
Monday 15th March 2010
Law firm Gordons has advised AIM-listed Helesi plc, a Greece and UK-based refuse and recycling wheelie bin manufacturing business, on the £1.65m sale of its UK operations to the Leeds environmental products group Straight plc.
The move sees Straight acquiring the Rotherham-based business of Helesi for an initial £450,000 in cash, with a similar sum to be paid on completion and the balance to be paid in 10 equal monthly installments starting on April 30. Helesi was advised on the transaction by Gordons corporate solicitors Jonathan Asquez and Andy Brian.
While Straight holds a share of between 10 per cent and 15 per cent of the UK wheeled bin market, it does not manufacture its own products. The company believes that this deal will allow it to generate the margins on wheelie bins that it makes on its own range of waste and recycling containers.
As part of the deal, Straight has signed a strategic alliance with Helesi. The alliance will see it become the exclusive UK and Irish distributor and licensee for other Helesi products including four-wheeled bins and give it first refusal to import and distribute any new products.
Sakis Andrianopoulos, chief executive of Helesi, said: “Gordons provided us with outstanding advice throughout this deal, ensuring that we were able to move at pace and complete the transaction quickly and efficiently.
“The strategic alliance the sale has created will rationalise our UK activities, whilst enabling us to concentrate our manufacturing operations into new modern facilities elsewhere in Europe. This transaction represents a natural development of our European growth strategy. We look forward to working with Straight to develop our activities in the UK market.”
AIM-listed Straight supplies a range of products including kerbside recycling containers, water butts and compost bins. Helesi is based in Nicosia, Cyprus, and has manufacturing operations in Northern Greece and Italy.
Jonathan Asquez commented: “This sale and strategic alliance provides both companies with the platform to benefit from new opportunities. Helesi and Straight are committed to expanding their respective offers and we are very pleased to have been able to play our part in this exciting development for both companies.”