MALAYSIA – Scientex Bhd has partnered with a Japan-based producer of liquid and paste packaging systems, Taisei Lamick Co Ltd, to expand its market share in the region.
Taisei Lamick is involved in the manufacturing and sale of plastic films, retort pouches and pouches with zippers for automatic filling with liquids and pastes, as well as manufacturing and sale of “DANGAN” auto fillers for liquids and pastes, peripheral devices, and technical services.
Its subsidiary Taisei Lamick Malaysia Sdn Bhd (TLM) is primarily involved in the manufacturing and sale of printed and laminated flexible light packaging materials for food and beverage (F&B) and Fast Moving Consumer Goods (FMCG) products.
Under the agreement, Scientex’s wholly owned subsidiary Scientex Packaging Film Sdn Bhd will acquire 8,100 ordinary shares representing 80.2% equity interest in TLM for RM63.8 million cash consideration.
Upon completion of the SSA, Scientex will hold 80.2% equity in TLM, while Taisei Lamick will hold the remaining 19.8% equity.
Scientex Chief Executive Officer Lim Peng Jin said the collaboration, leveraging the strong reputation and collective strengths of Scientex and Taisei Lamick, is poised to bring industry-defining cost-competitive quality products to regional clientele.
“Foremost is the fact that it would enable Scientex to gain an immediate foothold into the fast-growing film business that is used in liquid and paste packaging, thus enhancing our offering of diversified and customized flexible packaging products, especially in the F&B sector,” added Jin.
“It will also provide an opportunity for us to expand our capability into producing customized healthcare and hygiene-related packaging and widen the range of value-added packaging solutions in the FMCG sector.”
The proposed acquisition is to be funded by internally generated funds and/or bank borrowings and is not subject to the approval of Scientex shareholders and government authorities in Malaysia.
The acquisition is expected to further enhance the Scientex group’s competitive edge as it aspires to be a regional leader in the flexible plastic packaging market.
Barring unforeseen circumstances, the proposed acquisition is expected to be completed in the second half of the year 2022 and is anticipated to contribute positively to the earnings and net assets of Scientex for the financial year ending 31 July 2023.
Liked this article? Subscribe to our regular email newsletters with the latest news insights from Africa and the World’s packaging and printing industry. SUBSCRIBE HERE.