Acquisition of Alma Products Limited

RNS Number : 2133N
Coral Products PLC
30 May 2022
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

 

Coral Products plc

(the "Company", the "Group" or "Coral")  

Acquisition of Alma Products Limited

 

Coral Products plc, a specialist in the design, manufacture and supply of plastic products based in Wythenshawe, Manchester, is pleased to announce that it has today acquired the entire issued share capital of Alma Products Limited ("Alma") for a net consideration of 1,500,000 (the "Acquisition") to be satisfied in cash.

The cash consideration for the Acquisition is being satisfied from the Group's existing resources.

In addition, an earn-out consideration ("Earn Out Consideration") is payable for the year ended 30 April 2023 if the EBITDA:

· Is equal to £500,000 then the amount of Earn Out Consideration shall be £1,000,000;

· Is less than £500,000 then the Earn Out Consideration shall be £1,000,000 less an amount equal to £5 for each £1 EBITDA is below £500,000;

· Is less than or equal to £300,000 then the Earn Out Consideration shall be £0; or

· Is more than £500,000, an additional amount payable shall be calculated as follows:

(5x multiple of every £1 by which the EBITDA exceeds £500,000) multiplied by 50%

Under no circumstances shall the Earn Out Consideration exceed £1,500,000

Executive Chairman, Joe Grimmond, said:  "This acquisition further reinforces our focus on niche, specialist operators in the plastics sector.

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.

Alma with its BRC grade and ISO 9000 quality certifications can operate across a wide range of sectors including food packaging and personal care as examples.

This acquisition broadens our Groups product and manufacturing offering and greatly expands our available market opportunities.

We expect this acquisition will be earnings enhancing in its first year."

About Alma Products Limited

Alma has expertise in extrusion, thermoforming and container printing. It is owned and controlled by Hildegard Bobb-Kessler ("Vendor").

The Alma team will remain as employees of the Group.

As per the audited financial statements for the year ended 31 December 2020, Alma reported an adjusted net asset value of  £1,800,000; sales of £8,700,000, profit before tax of £264,000 and EBITDA of £469,000. For the year ended 31 December 2021, Alma is forecasting sales of 12,300,000, profit before tax of £146,000, EBITDA of £424,000 and an adjusted net asset value of 2,000,000.  

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

For more information on Coral and Alma, please visit the following websites:

www.coralproducts.com  

www.almaproducts.co.uk

 

ENQUIRIES :

Coral Products plc

Joe Grimmond, Executive Chairman     Tel: 07703 518148

WH Ireland, Nominated Adviser and Broker      Tel: 020 7220 1666

Katy Mitchell

Darshan Patel

Megan Liddell

Capital Markets Consultants Limited   Tel: 07515 587184

Richard Pearson 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
ACQEBLBXLELEBBF
UK 100

Latest directors dealings