Coral Products has entered into a share purchase agreement with One51 ES Plastics– the UK subsidiary of the IPL Plastics Group – for the conditional sale of Coral Products (Mouldings) and Interpack for an estimated £7.9 million.
Completion is expected to occur in February 2021, with a back-stop date of 30 April 2021, according to a statement from Coral Products. The deal will mean that IPL becomes an even larger suppliers of bins, boxes and caddies for the UK waste and recycling market.
The agreement is conditional on shareholder approval and certain works to be carried out at Coral’s Haydock site, expected to be finalised before 31 January 2021.
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.
The IPL Plastics Group has its head office in Canada and 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 acquisition of Coral Products (Mouldings) will strengthen IPL’s position in the local authority market where it already says it works with 90% of UK local authorities.
Coral Products (Mouldings) describes itself as a plastic moulding specialist, manufacturer and distributor of plastic injection, extruded and blow moulded products into a diverse range of sectors including food packaging, personal care, household and automotive.
Its Haydock facility has more than 50 dedicated machines ranging from 25 tonne to 1,150 tonne performance, operating from a circa 100,000 sq. ft covering freehold facility in Haydock equipped with modern plant suitable for the supply of a wide range of customers.
Interpack is part of the Coral Products group and is a nationwide distributor of food packaging, supplying mainly to independent food manufacturers or packers.
Michael Wood, CEO of the Coral Products, will resign from the company’s board on completion of the sale as he will be joining the purchaser as part of the sale agreement.
Joseph Grimmond, currently non-executive Chairman, will be appointed executive chairman of the company.
After the sale is completed, the continuing group of Coral Products will consist of Coral Products plc, the holding company, Tatra Rotalac Limited, which specialises in the manufacture of plastic extrusions and injection mouldings, and Global One-Pak Limited, a leading supplier of lotion pumps, triggers and mist sprayers.