Yorkshire plastics firm bought in £2.5m deal

PACKAGING business Coral Products has agreed to buy Tatra Plastics Manufacturing, a Halifax-based injection moulding firm, in a £2.5m cash and shares deal.

Haydock-based Coral used to focus on DVD and CD cases but has seen its trading performance improve by diversifying into other moulded plastic products such as recycling bins.

It is covering most of the acquisition costs by raising £1.7m through a share placing.

Coral said Tatra holds contracts with major corporations in the telecoms and rail industries and makes the “Click & Fix” plastic panel system which was used to make stables for the London Olympics.

In the year to December Tatra, which has been sold by the Freud family, made a pre-tax profit of £200,000 on sales of £3.2m. Coral said the business should be earnings enhancing in the first full-year.

Chairman Joe Grimmond said: “The acquisition of Tatra expands Coral’s market coverage and product range, is expected to be earnings enhancing in its first year and will enhance the utilisation of the manufacturing capacity at our Haydock site.”