UK-based Coral Products group, a UK-headquartered manufacturer and distributor of plastic injection, extruded and blow moulded products has entered into a share purchase agreement for the conditional sale of two of its four operating companies, Coral Products Mouldings (CPL) and Interpack, for an estimated £7.9 million. Interpack is a UK nationwide distributor of food packaging, supplying mainly to independent food manufacturers or packers; CPL is a plastic moulding specialist.
The purchaser is One51 ES Plastics UK, the UK subsidiary of Canada’s IPL Plastics Group.
Coral Products said the £7.9m would be payable on completion, and subject to an adjustment following the preparation of completion accounts and adjusting for certain liabilities.
Completion is expected to occur in February 2021, with a back-stop date of 30 April 2021.
Coral Products will continue to hold the freehold of the 100,000 sq.ft Haydock site from which CPL operates and where, in 2018, the company also installed a recycling plant for the recycling of used PP and HDPE plastics and containers, such as local authority recycling bins and food waste caddies. The facility is equipped with over 50 dedicated machines ranging in size from 25 tonne to 1,150 tonne performance.
Coral Products will lease the site to One51 ES Plastics for £300,000 per annum, with a five year break clause and rent review.
Michael Wood, CEO at CPL, will resign from the company’s board on completion of the sale as he will be joining the purchaser as part of the sale agreement. Joseph Grimmond, who is currently non-executive chairman, will be appointed Executive Chairman of the company.
Following the disposal, the Coral Products group will comprise Coral Products Plc, the Group holding company; Tatra Rotalac Limited, which specialises in the manufacture of plastic extrusions and injection mouldings; and Global One-Pak Limited, a leading supplier of lotion pumps, triggers and mist sprayers.
The purchasing company, IPL, whose corporate offices are in Montreal, Canada, and Dublin, Ireland, manufactures customised injection-moulded packaging solutions and rigid containers primarily for the food, consumer, agricultural, logistics and environmental end-markets and has operations in Canada, the U.S, the U.K.- where it owns MGB Plastics and Straight - , Ireland, Belgium, China and Mexico. With a turnover is in excess of USD 700 million, IPL is active across three divisions: consumer packaging solutions, large format packaging and environmental solutions and returnable packaging solutions. A leading supplier of innovative returnable products, the company claims to be one of the largest sustainable packaging solutions providers in North America. It makes extensive use of recycled resins across the group.
IPL was acquired by the Chicago-based private equity investment firm Madison Dearborn Partners in October 2020.