A double disposal agreed by Coral Products has completed, with a Tamworth-based company acquiring the businesses.
One51 ES Plastics (UK) is behind the takeover of Coral Products (Mouldings) (CPL) and Interpack for £7.9m, with terms agreed in January.
Post-completion, Coral Products chief executive Michael Wood is resigning from the board to join the purchaser as part of the agreement.
Non-executive chairman Joseph Grimmond will be appointed executive chairman.
Coral Products believes that the disposal provides an opportunity to “crystallise an attractive return on invested capital with respect to the sale companies, reduce net debt and also to provide additional financial flexibility to further develop and support the recent progress of the continuing group”.
The nominated adviser and broker is Cairn Financial Advisers.
An earlier version of this story had the incorrect headline: Tamworth business set to acquire Coral Products