Karex to buy UK condom maker Pasante for RM35.8m

by **Cals** Sun 29 May 2016, 23:56

By Meena Lakshana / theedgemarkets.com | May 27, 2016 : 8:02 PM MYT
KUALA LUMPUR (May 27): Karex Holdings Sdn Bhd (KHSB), a wholly-owned subsidiary of Karex Bhd, is acquiring Pasante, one of the largest independent condom manufacturing companies in the United Kingdom (UK), for £6 million (RM35.84 million).

KHSB inked the conditional share purchase agreement (SPA) with vendors Lawrence James Boon, Dominic Frederick Boon and Paul Richard Boon to effect the purchase, today.

The private limited company exports condoms and healthcare products to over 60 countries in the world. It also owns the condom and lubricant brand "Pasante", besides being the sole official distributor of Sebamed in the UK.

Karex said Pasante will complement Karex's existing own brand manufacturing (OBM) brands, which includes 'Carex', 'INNO', ONE®, "ESP" and the newly acquired TheyFit®, in its future offerings for the UK market.

Having operated for more than 14 years, Pasante offers a wide range of sexual wellness products including condoms, lubricants, HIV test kits, pregnancy test kits and others," the filing added.

For the financial year ended Jan 31, 2016 (FY16), Pasante saw its profit after tax rise 40% to £700,000 from £500,000 in FY15, while revenue increased 0.87% to £6.93 million from £6.87 million in FY15

Based on its latest audited financial statements for FY16, Pasante's audited net assets stood at £1.24 million.

Karex expects the proposed acquisition to positively impact its consolidated earnings and earnings per share for the financial year ending June 30, 2017.

The proposed acquisition is expected to be completed within 45 days.

Karex shares closed unchanged at RM2.32, with a market capitalisation of RM2.33 billion.