LONDON, UK: Coral Products plc has acquired the entire issued share capital of Manplas Holdings Limited for a consideration of £300,000 to be satisfied by the payment of £200,000 in cash and the issue of 625,000 ordinary shares in the Company at a price of 16p per ordinary share (for a total value of £100,000), which are subject to a twelve month lock in arrangement.

Coral Products plc is a specialist in the design, manufacture and supply of plastic products based in Wythenshawe, Manchester.

The cash consideration for the Acquisition is being satisfied from the Group’s existing resources and the Consideration Shares will be settled from the ordinary shares held by the Company in treasury. A further announcement will be made when that occurs.

Executive Chairman, Joe Grimmond, said: “These premises adjoin those of our Tatra Rotalac subsidiary and will enable further development of the Tatra Rotalac business by expanding manufacturing space available without the substantial costs involved in increasing the required power supply. Furthermore, the services provided by Manplas are complementary to those of our Customised Packaging Ltd subsidiary also based nearby.

The combined acknowledged expertise of Customised Packaging Ltd and Manplas forms what will be a leading provider of Customised Product protection solutions solving logistic problems across multiple sectors. This is in line with our objective of building a specialist group of businesses which are product and design led.”

Manplas Holdings provides a custom manufacturing service for the production of vacuum-formed components and sheet plastic parts. Markets supplied include on and off-road vehicles, retail display, leisure and packaging among others. The vendors were Joseph Green, Robert Stokes and Ian Thomas. Manplas, which is based in Manchester will continue to operate from its existing premises.

As per the unaudited financial statements for the year ended 30 June 2021, Manplas’s sales were £2.7 million, loss after tax was £29,000 and net asset value was £0.3 million. Pursuant to the terms of the share purchase agreement, the Vendors have given warranties and indemnities in favour of the Company.