Recycling products company Straight has acquired Dyro Holdings for £2.9 million.

Recycling products company Straight has acquired Dyro Holdings for £2.9 million.

Under the terms of the deal an initial payment of £970,000 will be followed by two annual deferred payments of the same amount. The initial sum was funded through a £1.5 million loan from Lloyds TSB, which also provides for Dyro’s working capital needs.

Hull-based Dyro is a plastic injection moulding company, manufacturing products such as shelving and storage units for the DIY sector. The company trades as Powell Plastics. In 2009 Dyro declared a pre-tax profit of £1.12 million on a turnover of £10 million.

AIM-listed Straight produces environmental products including recycling containers and compost bins. Founded in 1993, the Leeds-based company has a trade division that supplies local authorities and businesses, and a retail arm that sells directly to the public. In March 2010 Straight acquired the UK operations of the Greek plastics manufacturer Helesi, which allowed the company to produce its first range of wheeled bins.

Dyro has been a supplier to Straight for a number of years and the acquisition will allow the company to directly manufacture its own products.

Jonathan Straight, chief executive of Straight, says that the move to direct production will aid integration of the companies and he also hopes to make future acquisitions. He adds: ‘The board has plans to further develop its new Hull site in line with the strategic goals of the Group.’