Business
Acquisition of the assets of AAC Cyroma Limited
Coral Products plc has acquired the assets of AAC Cyroma Limited for £95,000 in cash, funded from existing resources, through its subsidiary Manplas Ltd. This acquisition includes plant, machinery, goodwill, stock, and intellectual property, with no shares or liabilities assumed. AAC Cyroma generated approximately £2.5 million in revenue in the year ended 30 September 2024 and was a direct competitor to Manplas. The transaction is expected to retain between £1.6 million and £2.0 million in annualised revenue and is anticipated to be earnings enhancing in the current financial year following a short integration period, strengthening Manplas' manufacturing capabilities and accelerating its capital upgrade program. Disclaimer*
About this update from Coral Products Plc
[{"type":"text","content":"\n\nCoral Products plc\n(\"Coral\", the \"Company\" or the \"Group\")\nAcquisition of the assets of AAC Cyroma Limited\nCoral Products plc, a group of specialist businesses in the design, UK manufacture and omni-channel supply of a wide range of bespoke plastic products based in Wythenshawe, Manchester, is pleased to announce that it has agreed to purchase the assets of AAC Cyroma Ltd (\"AAC Cyroma\") from its liquidators for a total consideration of £95,000 in cash, through its wholly owned subsidiary Manplas Ltd (\"Manplas\"), part of its Rigid Plastics Division.\nThe acquisition was completed via an insolvent sale from the joint liquidators for selected plant and machinery, goodwill,\n stock and certain intellectual property. No shares were acquired, and no historic liabilities, pension obligations or creditor balances have been assumed by the Group.\nThe total consideration payable for the acquisition was £95,000 plus VAT and was funded from the Group's existing cash resources.\nAAC Cyroma generated revenues of approximately £2.5 million in the year ended 30 September 2024 (with similar revenue performance achieved in the prior period) and operated in similar end markets to Manplas, where it had been a direct competitor. The business experienced financial distress following a change in ownership and management in October 2024, which ultimately resulted in its insolvency.\nAll employees of AAC Cyroma were made redundant prior to completion. Manplas intends to retain a limited number of key technical personnel, subject to agreement, in order to support knowledge transfer and customer continuity.\nThe Group has agreed an eight week licence to occupy and expects to complete the relocation and integration of the acquired plant and machinery into Manplas' existing manufacturing facility in Wythenshawe within eight weeks of completion. The integration will be undertaken within the Group's existing operational footprint and is not expected to result in any increase in fixed overhead.\nFollowing preparatory work undertaken by Manplas prior to completion, the Group expects to retain a significant proportion of AAC Cyroma's former customer base. The transaction is expected to result in the retention of between £1.6 million and £2.0 million of annualised revenue, which will be absorbed into Manplas' existing operations.\nThe ...