Plastic products manufacturer Coral Products said it had agreed to sell assets including a mouldings business to One51 ES Plastics for an estimated initial payment of £7.9 million.
The deal involved the sale of Coral Products Mouldings and Interpack and was expected to be wrapped up in February.
Coral Products said it would be left with Coral Products plc, Tatra Rotalac and Global One-Pack.
The company would continue to hold the freehold for its Haydock site, from which the mouldings business operated, and enter into a 10-year lease with the purchaser at rent of £300,000 per annum.
Chief executive Michael Wood would resign and join the purchaser as part of the sale agreement, with chairman Joseph Grimmond to become executive chairman of the remaining business.
'The board believes that the disposal provides the company with the opportunity to crystallise an attractive return on invested capital ... reduce net debt and also to provide additional financial flexibility to further develop and support the recent progress of the continuing group,' the company said.
At 9:03am: (LON:CRU) Coral Products PLC share price was 0p at 4.75p
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