Plastics manufacturer expands with ‘niche’ acquisition
Coral Products, a specialist plastic manufacturer, has acquired an ‘eco-friendly’ Nottinghamshire business in a deal worth up to £5.6m.
Manchester-based Coral Products said the acquisition of Sutton-in-Ashfield-headquartered Ecodeck will expand its product offering.
Ecodeck, which is currently owned by Matthew and Kelly Staples, supplies a range of building and landscape products from driveway grids, gravel pathway grids to plastic shed bases and grass grid reinforcement.
Its range of products are all environmentally and eco-friendly being made from 100% recycled plastic.
Revenues for the year to 30 January 2022 were £6.8m and pre-tax profit of £900,000, and net asset value was £1.9m.
Coral will pay an initial cash sum of £3.5m to Ecodeck alongside the issue of 6.2m shares valued at £1m, which are subject to a 12 month lock in arrangement and an earn of up to £1.25m.
Executive Chairman, Joe Grimmond, said: “This acquisition further reinforces our focus on niche, specialist operators in the plastics sector.
“We have an opportunity to leverage Ecodeck’s on-line platform for other Group eco-friendly products.
“We see significant scope to add value as we integrate the business into the Group – the acquisition continues to broaden our Group’s product offering and greatly enhances our available market opportunities. We expect this acquisition will be earnings enhancing in its first year.”