Merseyside plastics manufacturer Coral completes acquisition of rival for £2.5 million

Merseyside-based Coral Products plc, a specialist in the design, manufacture and supply of injection moulded plastic products has announced that the acquisition of Tatra Plastics Manufacturing Ltd has now completed.

The plastics manufacturer said £2 million will be satisfied in cash and £500k will be satisfied by the issue of 3.3 million new Coral shares to the owners of Tatra at a price of 15p per share.

The company said West Yorkshire-based Tatra has current contracts with a number of major corporations in the telecommunications and rail industries and has for the last five years been developing and manufacturing products for the fibre optic market.

The acquisition will provide Coral with an entry into the rail and telecoms markets and expand Coral’s range of products.

For the year ended December 31, Tatra posted pretax profit £200k, on sales of £3.2 million. Tatra is expected to be earnings-enhancing for Coral in its first full year as part of the Coral group of companies.