19th Jan 2016 15:55
LONDON (Alliance News) - Coral Products PLC Tuesday said it has purchased the fixed assets, stock and business of Rotalac Plastics Ltd for a total consideration of GBP160,000.
The designer, manufacturer and supplier of plastic products said it has funded the deal using existing cash resources, hoping the deal will broaden its product range.
Rotalac, which is based in Manchester, provides bespoke thermoplastic extrusion and moulding solutions across a number of industries worldwide, including aerospace, medical and automotive. Rotalac is also a leader in shutter system design and manufacture including the branded Tambour range of shutters, said Coral Products.
Rotalac claims to be one of the UK?s leading plastic extruders and injection moulders and also the UK's number one manufacturer of plastic and steel shutters through its Tambour Shutter division.
In 2014, Rotalac reported sales of GBP3.1 million and an operating profit of GBP134,000. At the end of that year, the net book of its fixed assets and stock stood at GBP708,000 and GBP212,000 respectively.
"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," said Chairman Joe Grimmond.
Coral shares were trading down 2.5% to 23.40 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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