REG - Coral Products PLC - Acquisition of Alma Products Limited

Coral ProductsAnnouncement

30/05/2022 07:15

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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 £1,500,000 (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 £500,000 then the amount of Earn Out Consideration shall
be £1,000,000;

·    Is less than £500,000 then the Earn Out Consideration shall be
£1,000,000 less an amount equal to £5 for each £1 EBITDA is below
£500,000;

·    Is less than or equal to £300,000 then the Earn Out Consideration
shall be £0; or

·    Is more than £500,000, an additional amount payable shall be
calculated as follows:

o  (5x multiple of every £1 by which the EBITDA exceeds £500,000)
multiplied by 50%

Under no circumstances shall the Earn Out Consideration exceed £1,500,000

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 £1,800,000; sales
of £8,700,000, profit before tax of £264,000 and EBITDA of £469,000. For
the year ended 31 December 2021, Alma is forecasting sales of £12,300,000,
profit before tax of £146,000, EBITDA of £424,000 and an adjusted net asset
value of £2,000,000.

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 (http://www.coralproducts.com/)

www.almaproducts.co.uk (http://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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