The firm invested MYR63.8m ($14.2m) for an 80.2% stake in Taisei Lamick Malaysia to expand its packaging solutions portfolio for F&B, FMCG, healthcare and hygiene-related sectors
Scientex Berhad partners with Taisei Lamick to expand its market share in liquid and paste packaging sector in the region. (Credit: Dmitriy from Pixabay)
Packaging manufacturer Scientex has partnered with Taisei Lamick to expand its market share in liquid and paste packaging in the region.
Japan-based Taisei Lamick produces and sells plastic films, retort pouches and pouches with zippers for automatic filling with liquids and pastes.
Taisei also produces and sells DANGAN auto fillers for liquids and pastes, as well as peripheral equipment and technical services.
The firm’s subsidiary Taisei Lamick Malaysia (TLM) is involved in the production and sale of printed and laminated flexible light packaging materials for food and beverage and fast-moving consumer goods (FMCG) products.
Scientex Packaging Film, a fully owned subsidiary of Scientex, signed a share sale agreement (SSA) with Taisei Lamick to buy 8,100 ordinary shares, or 80.2% of TLM, for MYR63.8m ($14.2m) in cash.
Following the SSA, Scientex will own 80.2% of the stock of TLM, with Taisei Lamick owning the remaining 19.8%.
Scientex Berhad CEO Lim Peng Jin said: “This partnership is a meaningful step for Scientex on multiple fronts. Notably, Taisei Lamick is the No. 1 producer for liquid and paste packaging in Japan.
“This collaboration, leveraging on the strong reputation and collective strengths of Scientex and Taisei Lamick, is poised to bring industry-defining cost-competitive quality products to regional clientele; and hence potentially expanding our flexible packaging market share.
“Foremost is the fact that it would enable Scientex to gain an immediate foothold into the fast-growing film business that is used in liquid and paste packaging, thus enhancing our offering of diversified and customised flexible packaging products especially in the F&B sector.
“It will also provide an opportunity for us to expand our capability into producing customised healthcare and hygiene-related packaging, and widen the range of value-added packaging solutions in the FMCG sector.”
Scientex said that the deal will be funded by internally-generated funds and/or bank borrowings, and is not subject to the approval of Scientex’s shareholders and government authorities in Malaysia.
The proposed deal is anticipated to be closed in the second half of 2022.