Plastic product specialist Coral Products PLC (AIM:CRU) said it acquired Nottinghamshire-based Ecodeck Grids Ltd for up to £5.6mln.
Ecodeck, which turned over £6.8mln in 2021, supplies building and landscaping products made from 100% recycled plastic, including popular driveway and gravel pathway grids.
Current owners Matthew and Kelly Staples will receive initial payments of £3.35mln plus £1mln in shares at 16p each, followed by payments based on a 12-month earn out worth up to £1.25mln.
Joe Grimmond, Coral's executive chairman, said: “This acquisition further reinforces our focus on niche, specialist operators in the plastics sector.”
He added that “the acquisition continues to broaden our group's product offering and greatly enhances our available market opportunities. We expect this acquisition will be earnings enhancing in its first year”.
Today, Coral Products shares are down 2% at 13p.