TIDMCRU
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 GBP1,500,000 (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 GBP500,000 then the amount of Earn Out Consideration shall be GBP1,000,000;
-- Is less than GBP500,000 then the Earn Out Consideration shall
be GBP1,000,000 less an amount equal to GBP5 for each GBP1 EBITDA
is below GBP500,000;
-- Is less than or equal to GBP300,000 then the Earn Out Consideration shall be GBP0; or
-- Is more than GBP500,000, an additional amount payable shall be calculated as follows:
o (5x multiple of every GBP1 by which the EBITDA exceeds
GBP500,000) multiplied by 50%
Under no circumstances shall the Earn Out Consideration exceed
GBP1,500,000
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
GBP1,800,000; sales of GBP8,700,000, profit before tax of
GBP264,000 and EBITDA of GBP469,000. For the year ended 31 December
2021, Alma is forecasting sales of GBP12,300,000, profit before tax
of GBP146,000, EBITDA of GBP424,000 and an adjusted net asset value
of GBP2,000,000.
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
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END
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