Scientex Bhd has acquired Mondi Ipoh Sdn Bhd (MISB) from Mondi Consumer Packaging International GmbH for RM58 million to expand its consumer packaging division.
In a statement today, the industrial packaging and property company said the acquisition was made via wholly-owned unit, Scientex Packaging Film Sdn Bhd.
Mondi Consumers Packaging is a wholly-owned subsidiary of international packaging and paper group Mondi.
Scientex said the proposed acquisition of MISB would be funded via internal funds and was expected to be completed by Aug 11, 2015.
Managing Director, Lim Peng Jin, said the successful acquisition of MISB would immediately allow the enlarged Scientex Group to expand its clientele to include leading international brands in the food and beverage and fast-moving consumer goods sectors.
"We also stand to benefit from the increased production capacity of the group's downstream consumer packaging products, particularly functional films," he said.
Post-acquisition of MISB, Scientex's consumer packaging production capacity would immediately be boosted by about 30 per cent to 76,800 metric tonnes per annum from 60,000 MT p.a. currently, he said.
"It is expected to contribute positively towards Scientex's earnings for the current financial year ending July 31, 2016 onwards," he said.
MISB's principal activity is the production of downstream specialty consumer packaging films and film-based components including form-fill-seal bags.
It has two manufacturing plants in Sungai Siput and Chemor in Perak, with a total production capacity of 16,800 metric tonnes per annum.