Coral Products, a UK-based supplier of flexible and film-based packaging solutions, has completed the acquisition of Arrow Film Converters.
The deal was made via Coral Products’ subsidiary, Film & Foil Solutions, for a consideration of £502,899 ($662,041).
Under the terms of the agreement, Coral Products will obtain several pieces of equipment such as flexographic printing machines, laminators, and slitting and punching facilities.
These new assets will enhance Coral’s current film and foil operations and expand its capabilities in the packaging sector.
The deal encompasses an upfront payment of £202,899, with the remaining £300,000 due within 14 days of finalising the transaction.
This outstanding balance is secured by a company guarantee to Arrow’s administrators, which will be released once the full payment is made.
The transaction is being funded without any increase to the group’s existing credit facilities, the company noted.
In addition, Film & Foil Solutions has agreed to a six-month licence for the BRCGS-accredited Castleford facility. Discussions will take place for a longer-term arrangement for these premises.
Following the acquisition, approximately 55 employees previously with Arrow will be transferred to Film & Foil Solutions.
Coral Products nonexecutive chair Joe Grimmond said: “This acquisition propels Film & Foil into the front line of specialist flexible packaging and provides Coral Products with capacity toward its medium-term goal of £50m of production availability.”
Coral Products is structured into two primary divisions: the flexibles division, which focuses on providing packaging solutions for fast-moving consumer goods clients, and the rigids division, which caters to various other packaging requirements across multiple sectors.
