Business
Acquisition of the assets of Arrow Film Converters
Acquisition of the assets of Arrow Film Converters.
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 Arrow Film Converters 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 business and certain assets of Arrow Film Converters Limited (\"Arrow\") from its administrators for a total consideration of £502,899 in cash, through its wholly owned subsidiary Film & Foil Solutions Limited (\"Film & Foil\").\nThe assets consist of state-of-the-art flexographic printing machines, laminators, slitting and punching facilities, which add to and complement the Company's existing Film & Foil business and capabilities.\nThe Company has made an initial cash payment of £202,899 with the outstanding balance of £300,000 to be settled within 14 days following completion. This balance is secured by way of a company guarantee in favour of Arrow's administrators, which will be released upon receipt of full payment. The cash payments have been funded without any increase to existing Group facilities.\nFilm & Foil have agreed to a 6-month licence to occupy the BRCgS fully accredited Castleford facility with a view to negotiate a long-term agreement for the premises. As part of the acquisition, Film & Foil will assume approx. 55 employees previously employed by Arrow and intend to run the business as a going concern.\nFor context, Arrow is an approved supplier to UK supermarkets and reported sales of £12.5 million in the 12-month period to 31 January 2022, £17.9 million in the 18-month period to 31 July 2023 and current sales demand of circa £1 million per month. There can be no guarantee that similar financial performance will be replicated following integration into Film & Foil and the broader Group.\nJoe Grimmond, Non-Executive Chairman, said \"This acquisition propels Film & Foil into the front line of specialist flexible packaging and provides Coral Products plc with capacity toward its medium-term goal of £50 million of production availability.\"\nThe information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it...