LONDON, UK: Coral Products plc has acquired the entire issued share capital of Ecodeck Grids Limited for a consideration of up to £5.6 million to be satisfied by the initial payment of £3.35 million in cash, the issue of 6.25 million ordinary shares in Coral at a price of 16p per ordinary share, and an earn out as described below of up to £1.25 million.

The cash consideration for the acquisition is being satisfied from the Group’s existing resources and the Consideration Shares will be settled from the 1,914,945 ordinary shares held by the company in treasury and the issue of 4,335,055 new shares.

Ecodeck Grids supply a range of building and landscape products from driveway grids, gravel pathway grids to plastic shed bases and grass grid reinforcement. The range of products are all environmentally and eco-friendly being made from 100% recycled plastic.

It is currently owned by Matthew and Kelly Staples. Ecodeck Grids, which is based in Sutton-in-Ashfield, Nottinghamshire will continue to operate from its existing premises.

As per the unaudited financial statements for the year ended 30 January 2022, Ecodeck’s sales were £6.8 million, profit after tax was £0.9 million and net asset value was £1.9 million.

Pursuant to the terms of the share purchase agreement, the vendors have given warranties and indemnities in favour of the Company.

Executive Chairman Coral Products, 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.”

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