Plastics maker Coral Products has taken over fellow Manchester business Manplas Holdings in a £300,000 deal that will allow it to expand a key part of its business without incurring "substantial" energy supply costs.
Manplas specialises in making vacuum-formed components and sheet plastic parts. It works with sectors including automotive manufacturing and retail.
The company is based next to Coral Products ' Tatra Rotalac business, which specialises in in plastic extrusion and injection moulding.
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Coral's executive chairman, Joe Grimmond, said: "These premises adjoin those of our Tatra Rotalac subsidiary and will enable further development of the Tatra Rotalac business by expanding manufacturing space available without the substantial costs involved in increasing the required power supply.
"Furthermore, the services provided by Manplas are complementary to those of our Customised Packaging Ltd subsidiary also based nearby. The combined acknowledged expertise of Customised Packaging Ltd and Manplas forms what will be a leading provider of Customised Product protection solutions solving logistic problems across multiple sectors.
"This is in line with our objective of building a specialist group of businesses which are product and design led."
The £300,000 deal includes the payment of £200,000 in cash, from the Coral group's existing resources, and the issue of 625,000 ordinary shares in Coral at a price of 16p per share.
Manplas was sold by Joseph Green, Robert Stokes and Ian Thomas.
In Monday's statement to the London Stock Exchange, Coral reported that Manplas's unaudited financial statements for the year ended 30 June, 2021, showed sales on £2.7m with a loss after tax of £29,000.
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