Scientex buys packaging firm for RM40 million

by **Cals** Mon 11 Nov 2013, 14:31

Business & Markets 2013

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 11 November 2013 13:13

KUALA LUMPUR (Nov 11): Leading packaging manufacturer and property developer Scientex Bhd announced that it is buying a consumer packaging company for RM40 million.

Scientex said through its wholly-owned unit Scientex Packaging Film Sdn Bhd, it entered into a share sale agreement with Seacera Polymer and Seacera Group Bhd for the acquisition today.

The proposed acquisition is estimated to be completed during the financial year ending 31 July 2014 (FY2014).

The purchase of Seacera Polyfilms Sdn Bhd is “a strategic fit to widen range of films used in flexible plastic packaging,” said Scientex in a press release.

Seacera Polyfilms is said to be a major producer of biaxially-oriented polypropylene (BOPP) films in the foodstuff packaging industry. It is a wholly-owned subsidiary of listed Seacera Group Bhd.

“The purchase will cost Scientex RM40 million, which will be funded by internal funds and bank borrowings,” Scentex said, adding it wants to capture a larger market share of the fast-growing consumer packaging industry.

This buy follows Scientex’s January’s acquisition of GW Plastics Holdings Bhd’s core business, which marked the group’s maiden foray into the consumer packaging sector.

Lim Peng Jin, managing director of Scientex, said in the statement:

“The acquisition of Seacera Polyfilms is a strategic fit in our consumer packaging segment, and effectively extends our value chain to provide a wider range of products to our downstream customers.

“This exercise will strengthen our capability to meet the demand from the growing consumer packaging market, while at the same time further reinforces our position as a leading manufacturer of consumer packaging in the region.”