Through the deal, Nexgram plans to manufacture and supply biomedical materials, life-saving medical devices, medical compounds and personal protective equipment
Nexgram Group to acquire majority stake in Arita Plastics. (Credit: Shutterbug75 from Pixabay.)
Malaysia-based medical devices provider Nexgram Group has agreed to acquire a majority stake in Arita Plastics Industries, a medical plastic company, in a move to enter into the vaccine bottling business.
Nexgram’s subsidiary Nmed Industries has signed a share sale agreement with Dato’ Lim Theng Hooi, Datin Khoo Phaik Ee, and Teoh Ean Kee to obtain a 60% equity stake in Arita Plastics for MYR30m ($7.15m).
Through the deal, Nexgram plans to manufacture and supply biomedical materials, life-saving medical devices, medical compounds and personal protective equipment.
The equipment includes protection face shield, hospital Acrylic (PMMA) medical intubation boxes and gloves, and Acrylic sheets as an alternative material to borosilicate glass vials for Covid-19 vaccines.
Nexgram Group executive director Tuan Haji Mazru said: “As on the rationale for the acquisition is in line with the upsurge in demand of medical personal protection equipment including face shield for hospital and schools, hospital intubation and gloves, as well as upcoming Covid-19 vaccine bottling across the globe due to the unprecedented global pandemic event. Covid-19 has created higher safety and hygiene awareness across all industries.
“As a result, the medical plastic industry is expected to undergo a structural step-up in demand with rising awareness on the importance of personal protection, hospital demand, and coming vaccination supplies markets.”
Arita Plastics manufactures optical clear extrusion plastic sheets
Arita also manufactures high-quality optical clear extrusion plastic sheets in a dust-free environment to produce high technology products including LCD panel, light guide panel, and thermoforming and vacuum forming products for its customers in Malaysia, South East Asia, Australia, Japan, China/ Hong Kong, India, Europe and South Africa.
Mazru added: “The acquisition will enable Nexgram Group to leverage on Arita’s existing products and services to further expand its clientele and business, providing a more robust bottom to Nexgram Biomedic, the medical division of the group.”