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Scientex to acquire GW Plastics businesses for $93m

Malaysian industrial packaging manufacturer Scientex’s (SB) wholly-owned subsidiary Scientex Packaging Film (SPF) will acquire the core businesses of GW Plastics for MYR283.2m ($93m). The businesses include Great Wall Plastic Industries and GW Packaging.

The proposed acquisitions allow the consolidation of GW Plastic and GW Packaging with the operations of SB Group and will allow the group to widen its manufacturing capability for packaging products.

Further, both the businesses will become wholly-owned subsidiaries of SB upon completion of the acquisitions, expected by the first quarter of 2013.

According to Scientex, the acquisitions will enable the group to increase its annual production capacity for cast stretch film to 154,000mt from its existing capacity of 120,000mt.

Upon closing of the acquisitions, the enlarged SB Group also expects to benefit from the increased and larger market share in the manufacturing of packaging products.

The group is expected to increase its customer and supplier base, improve its products range to cater for diversified customer base and sustain competitive advantages in the manufacturing of packaging products, with the larger market share.

Besides, the acquisition will allow SB Group to expand into the rapidly expanding global food and beverage (F&B) market segment through GW Plastics’ blown film, and downstream printing and lamination facilities.

The acquisition will also improve SB Group’s export base further as currently, about 97% of GW Packaging’s products are for the export market.