EUROPE – 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 £10.68 million or Bt570 million (US$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 £12.2 million (US$14.85m) and a core net profit after tax of roughly £2.7 million (US$3.29m) as of the end of 2022. The company’s total assets are valued at approximately £6.5 million (US$7.91m).
Concurrently, SCGP concluded an M&P deal to acquire an 85% stake in Italian medical equipment manufacturer Bicappa Lab.
This transaction was made through SCGP’s 85%-owned subsidiary Deltalab. The deal has an estimated value of €3.23 million or Bt125 million (US$3.44m).
The acquisition will strengthen Deltalab’s business through backward integration by acquiring Pipette tips, one of Deltalab’s key laboratory equipment products.
Bicappa is one of the major manufacturers of Pipette tips in Europe and uses automated machinery in the production and mold design process.
This technological advancement will allow Deltalab to expand into the Pipette tips business immediately with access to knowledge.
About the use of polymer injection technology for Auto-pipetting and automation of business operations. Benefits from this synergy include increasing sales of Deltalab’s medical and other laboratory equipment through Bicappa’s customer base.
In the last 12 months ending 30 June 2023, Bicappa registered a revenue of €3 million (US$3.19m), with a core profit after tax of €0.62 million (US$0.66m). The total assets of Bicappa are worth €2.4 million (US$2.55m).
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.”
