(Alliance News) - Manchester-based Coral Products PLC on Monday said it has bought Alma Products Ltd, reinforcing its "niche" in the plastics sector.
The plastic manufacturer said it will pay an initial GBP1.5 million in cash for Alma. It additionally will pay up to GBP1.5 million more as an earn out, based on earnings before interest, tax, depreciation and amortisation in the financial year ending April 30 next year.
Coral Products said that the acquisition of the Runcorn, Cheshire-based company will reinforce its niche in the plastics sector, as Alma has "expertise in extrusion, thermoforming and container printing".
The company added that, for the year ended December 31, Alma is forecasting sales of GBP12.3 million, pretax profit of GBP146,000, and Ebitda of GBP424,000.
Executive Chair Joe Grimmond said: "Alma operating from its freehold Runcorn premise is very well invested in state-of-the-art sheet extrusion, volume vacuum forming and one of the most advanced computer-controlled printing facilities in the industry."
"We expect this acquisition will be earnings enhancing in its first year," he added.
Shares in Coral Products were down 4.9% at 14.50 pence each in London on Monday afternoon.
By Sophie Rose; sophierose@alliancenews.com
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Coral Products (CRU)