St Helens-based Coral Products hits ‘significant milestone’ with £3.6m acquisition

Coral Products plc, the injection moulded plastic product maker, has snapped up a Cheshire-based lotion pump manufacturer in a multi-million pound deal.

St Helens firm Coral Products acquired Global One-Pak (GOP) for a minimum of £3.6m, which includes £2.95m in cash and £650k raised through the issue of 3.25m shares at 20p each.

Coral Products chairman Joe Grimmond said: “The acquisition of GOP 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 and that Coral’s progressive dividend policy may continue without the group’s gearing exceeding 35%.”

The acquisition follows a deal completed last month that saw Coral Products acquire the fixed assets, stock and business of Manchester-based plastics firm Rotalac, which fell into administration on January 19.

Speaking to Plastics & Rubber Weekly at the time of the £160k deal, Mr Grimmond commented: “This is an exciting opportunity and in line with the group’s strategic plan to broaden our product range.

“We look forward to integrating Rotalac’s business into the group.”