July 2, 2014
Coral Products plc, a Haydock, England-based injection molder, has acquired Tatra Plastics Manufacturing for 2.5 million pounds ($4.2 million).
The deal to buy the West Yorkshire-based molder will be partly financed by the placing of 12.6 million shares.
Coral said Tatra, which was founded in 1963, was one of the United Kingdom’s longest established specialists in PVC and plastic injection molding and extrusion.
The company manufactures products for the telecommunications, railway and construction sectors and last year recorded annual sales of around 3.2 million pounds ($5.4 million) and pre-tax profits of 200,000 pounds ($343,000).
Tatra's chairman, Paul Freud, is set to join the Coral board as executive development director. His responsibilities will include “identifying new markets and possible further acquisitions for the company.”
Coral said it expected to be able to reduce Tatra’s fixed costs base by using some of its own manufacturing capacity in Haydock, although it did not say if this would affect any of Tatra's facilities.
In a statement Coral’s chairman Joe Grimmond said the deal would broaden his company’s market coverage and product range.
“It is expected to be earnings enhancing in its first year and will enhance the utilization of the manufacturing capacity at our Haydock site.”