Thai consumer packaging solutions provider SCG Packaging (SCGP) has announced the completion of two merger and partnership (M&P) agreements to expand its packaging portfolio.
In the first transaction, SCGP, through its wholly owned subsidiary SCGP Solutions Singapore, acquired a 100% stake in UK-based company Law Print & Packaging Management.
The estimated value of this transaction is approximately £10.68m or Bt570m ($12.95m).
The acquisition of Law Print & Packaging, which is a provider of packaging solutions mainly to the European and British markets, will help SCGP expand its customer network and strengthen sales channels in these regions.
Law Print & Packaging recorded a revenue of £12.2m and a core net profit after tax of roughly £2.7m as of the end of 2022. The company’s total assets are valued at approximately £6.5m.
Concurrently, SCGP concluded an M&P deal to acquire an 85% stake in Italian medical equipment manufacturer Bicappa Lab.
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This transaction was made through SCGP’s 85%-owned subsidiary Deltalab. The deal has an estimated value of €3.23m or Bt125m.
Bicappa’s acquisition will allow SCGP to expand its existing portfolio to further include scientific equipment, specifically pipette tips.
The investment is further expected to help Deltalab augment its pipette tips production capacity and gain access to the technology and design of injection moulding for auto-pipetting with high precision.
In the last 12 months ending 30 June 2023, Bicappa registered a revenue of £3m, with a core profit after tax of £0.62m. The total assets of Bicappa are worth £2.4m.
SCGP stated that the financial performance of both transactions will be consolidated from November 2023 onwards.
SCGP CEO Wichan Jitpukdee said: “SCGP moves forward with strategic expansion for quality growth.
“These investments in the comprehensive packaging solution will amplify our sales channels and broaden our packaging business into the global market.
“Venturing into the medical supply sector will further solidify our growth potential with the widening customer base, augment production capabilities, and enhance our business throughout the entire value chain.”