Acquisition of Tapmagic

 

TIDMSTT 
 
RNS Number : 2010X 
Straight PLC 
02 December 2010 
 

Date:                           2 December 2010 
On behalf of:               Straight plc ("Straight" or "the Group") 
Embargoed for 0700hrs 
 
Straight plc ("the Group") 
 
* Acquisition of Tapmagic Limited 
 
Straight plc (AIM: STT), the environmental products and services group, is 
pleased to announce that it has acquired the entire share capital of Tapmagic 
Limited "Tapmagic", a producer and innovator of water saving tap inserts for 
basin taps. 
 
The Group originally acquired 30% of Tapmagic's share capital in March 2007 for 
consideration of GBP35,000 and has now acquired its remaining share capital for 
a further GBP92,000 in cash pursuant to an option agreement entered into at that 
time. 
 
The addition of Tapmagic's proven and unique range of water saving devices to 
Straight's proprietary portfolio will significantly enhance the Group's offering 
to its utility company clients, most of which are currently issuing free water 
saving equipment such as tap inserts to their customers.  In addition the range 
is gaining acceptance with a number of retailers, and opportunities to leverage 
Tapmagic to the Group's existing garden and hardware customers will be pursued. 
 
Welcoming the news, Jonathan Straight, Chief Executive of Straight plc, said: 
 
"Whilst Tapmagic may be a relatively small investment for the Group, its dual 
flow concept is uniquely attractive and differentiates the product from other 
water saving devices.  The quality of product from Tapmagic complements 
Straight's current product line and we are very pleased to welcome this new 
addition to the Company." 
 
For further information, please contact 
 
+----------------------------------------+------------------------+ 
| Straight plc                           |                        | 
+----------------------------------------+------------------------+ 
| Jonathan Straight, Chief Executive     | 0113 245 2244          | 
+----------------------------------------+------------------------+ 
|                                        |                        | 
+----------------------------------------+------------------------+ 
| Cenkos Securities plc                  |                        | 
+----------------------------------------+------------------------+ 
| Ivonne Cantu/Christian Hobart          | 0207 397 8980          | 
|                                        |                        | 
+----------------------------------------+------------------------+ 
| Redleaf Communications                 | [e-mail] | 
+----------------------------------------+------------------------+ 
| Rebecca Sanders-Hewett/ Lucy  Salaman  | 0207 566 6700          | 
+----------------------------------------+------------------------+ 
 
Notes to Editors 
 
* Straight plc is the UK's leading supplier of specialist kerbside recycling 
containers as well as being a key supplier of a broad range of waste and 
recycling container solutions. Founded in 1993 by the current Chief Executive, 
Jonathan Straight, the business has since supplied more than 20 million kerbside 
boxes, baskets and caddies to local authorities across the UK, securing its 
position as the industry leader. 
* The business operates through two divisions. The core Trade Business supplying 
products in bulk to local authorities, utilities, the waste industry, retailers 
and other businesses and the Retail Business supplying a range of proprietary 
environmentally friendly consumer products directly to the public, often in 
partnership with a local authority or a utility. 
* In 2010 two acquisitions changed the business model, which previously relied 
on outsourced manufacture. In March 2010 Straight acquired the business and 
assets of the UK business of Helesi plc giving it a proprietary position in the 
wheeled bin market. This was followed in August 2010 by the acquisition of 
Powell Plastics, a key supplier of injection moulded products to the group. 
* In February 2009, Straight added to its portfolio with the acquisition of 
Harcostar Garden Products, a long established premium brand consisting of water 
butts, compost bins, watering cans and accessories. This gained new distribution 
channels for the business in the UK and in Europe. 
* In 2005, Straight acquired Blackwall Limited, the UK's largest supplier of 
home composters and water butts. Through the Blackwall brand, Straight has 
delivered more than 3.5 million compost bins and water butts. 
* Almost two thirds of the products supplied are produced in Straight's own 
factory and there are plans to expand this facility in the near future. 
* Straight plc has established diverse overseas sales channels for its products, 
some of which are manufactured locally to their markets in North America and in 
Australia. Other markets are serviced from UK production. 
* Further information about the company and its products can be found at: 
www.straight.co.uk 
 
About Tapmagic 
* Tapmagic units convert the flow of water into a spray reducing the flow from a 
standard tap outlet to 2 litres per minute in the low flow mode. However, unlike 
other similar water saving devices, it also enables the user to receive a full 
flow of water as the tap is turned on further. 
* All Tapmagic products save water and the associated energy used to heat, clean 
and transport it. Southern Water has independently run tests demonstrating a 52% 
water saving in their offices when using Tapmagic. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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