Coral Products PLC, based in Wythenshawe, Manchester is pleased to announce that it has acquired Customised Packaging Limited for a net consideration of £1.25 million. CPL designs, supplies and manufactures plastic products, using top-of-the-range sheet extrusion technology and vacuum forming capabilities to its network of blue-chip customers.
Manchester-based CPL will continue to operate from its existing premises, only 10 miles from Coral’s Wythenshawe facility.
The acquisition follows recent news of the purchase of Coral Products (Mouldings) and Interpack, previously subsidiaries of the Coral Group, by Tamworth-based One51 ES Plastics (UK).
Following the acquisitions, Coral Products Chief Executive, Michael Wood, will resign from the board to join the purchaser as part of the agreement, with Joe Grimmond appointed as Executive Chairman.
Joe Grimmond, Chairman of the Coral Group commented:
“The acquisition of CPL is a significant milestone for Coral as it expands further the Group’s market coverage and product range. The board anticipates that the acquisition will be earnings enhancing in its first year.“
Commenting on the sales of Coral Products and Interpack, Mr Grimmond added:
“This sale places the Group in a strong financial position with circa £8 million of net cash and two profitable remaining businesses in Tatra Rotalac and Global One-Pak.
“Furthermore, the Group continues to own the freehold site at Haydock which will now generate £300,000 p.a. in rent. It is the Board’s intention to conduct a review to determine the most advantageous route to deliver shareholder value and apply the proceeds from the Disposals.”