Coral Products announced yesterday (3 March) that it completed the acquisition of Customised Packaging Limited (CPL) for £1.25 million.
And, the plastic moulding specialist also announced that it completed the sale of Coral Products (Mouldings) and Interpack to One51 ES Plastics, the UK subsidiary of the Canada-based IPL Plastics Group, for an estimated £7.9 million.
The sale of Coral Product (Mouldings) was announced in December 2020 but was conditional on shareholder approval and certain works to be carried out at Coral’s Haydock site in Merseyside, which are now complete (see letsrecycle.com story).
CPL designs, manufactures and supplies plastic products using sheet extrusion technology and vacuum forming capabilities for its network of blue-chip customers.
Manchester-based CPL will continue to operate from its existing premises, only 10 miles from Coral Products’ Wythenshawe facility.
Joe Grimmond, recently appointed executive chairman of the Coral Group, said: “The acquisition of CPL is a significant milestone for Coral as it expands further the Group’s market coverage and product range. The board anticipates that the acquisition will be earnings enhancing in its first year.”
Coral Products is a manufacturer and distributor of plastic injection, extruded and blow-moulded products for a diverse range of sectors including food packaging, personal care, household, healthcare, automotive, telecoms and rail.
It operates manufacturing facilities in Wythenshawe in Greater Manchester and a distribution facility in Hyde, Greater Manchester.
The group consists of the holding company Coral Products plc, Tatra Rotalac Limited, which specialises in the manufacture of plastic extrusions and injection mouldings, Global One-Pak Limited, a leading supplier of lotion pumps, triggers and mist sprayers, and now CPL.
One51 ES Plastics
Coral Products (Mouldings) is a plastic moulding specialist while Interpack is a nationwide distributor of food packaging, supplying mainly to independent food manufacturers or packers.
Coral Products will continue to hold the freehold of its Haydock site, which One51 ES Plastics will rent for £300,000 per annum, with a five-year break clause and rent review. The site in Haydock was opened in 2018 (see letsrecycle.com story) and recycles plastic containers such as local authority recycling bins and food waste caddies.
With the deal now having gone through, Coral Products’ former CEO Michael Wood resigned from the company’s board to join One51 ES Plastics. He was replaced by Joseph Grimmond, who was previously Coral Products’ non-executive chairman. Again, this was an expected move.
Mr Grimmond said: “This sale places the Group in a strong financial position with circa £8 million of net cash and two profitable remaining businesses in Tatra Rotalac and Global One-Pak.
“Furthermore, the Group continues to own the freehold site at Haydock which will now generate £300,000 per annum in rent. It is the Board’s intention to conduct a review to determine the most advantageous route to deliver shareholder value and apply the proceeds from the disposals.”
IPL Plastics Group
The IPL Plastics Group is a specialty rigid plastic packaging manufacturer serving the food, consumer, agricultural, logistics, and environmental markets. In the UK, it owns MGB Plastics and Straight, and was acquired by the Chicago-based private equity investment firm Madison Dearborn Partners in October 2020.
The deal means IPL will becomes an even larger supplier of bins, boxes and caddies for the UK waste and recycling market.