Management group buys Balda's injection operation in Malaysia

By Gurdip Singh
Correspondent

Published: May 7, 2013 12:05 pm ET
Updated: May 7, 2013 12:06 pm ET

Related to this story

Topics Mergers & Acquisitions, Consumer Products, Electronics, Injection Molding

IPOH, MALAYSIA — The Malaysian management of Balda AG's injection molding plant in Ipoh, Malaysia, have purchased the plant's production and services, effective March 31.

The new owner, Blue Ocean Genius Sdn Bhd, is majority owned by James Lim, who was managing director of the Balda AG subsidiary, Balda Solutions Malaysia Sdn Bhd.

Bad Oeynhausen, Germany-based Balda will continue to own the land and building, and lease them to the new ownership group. Blue Ocean will have the option to buy the facility.

Balda AG announced the deal on April 26. Balda Solutions Malaysia officials did not comment, saying the deal was still under confidential negotiations.

The Ipoh site molds products for the consumer electronics industry.

Balda said it sold the Malaysian operation because it is focusing on prospects that offer the opportunity for long-term growth and a sustainable operating return on sales of at least 15 percent. In the first three quarters of the 2012/2013 financial year, the Ipoh site has posted an operating loss.

Balda said that Blue Ocean is paying "a symbolic price" to acquire the shares of Balda Solutions Malaysia. Balda expects the transaction to result in a cash inflow of around 6 million euros ($7.8 million) over the next three years, primarily through rental income.

Balda CEO Dominik Müser said in a news release: "The sale of the Ipoh site is another key step towards profitable growth for the Balda Group. The urgently needed strategic development of activities in Malaysia would have required substantial investments in the coming years in a weak environment for consumer electronics. Following the sale of the loss-making site, all of our group's activities are now profitable. At the same time, by holding on to the land and building, we have retained valuable assets in Malaysia."


Comments

Management group buys Balda's injection operation in Malaysia

By Gurdip Singh
Correspondent

Published: May 7, 2013 12:05 pm ET
Updated: May 7, 2013 12:06 pm ET

Post Your Comments


Back to story


More stories

Spain's ITC Packaging acquires Coveris rigids plant

July 31, 2014 9:59 am ET

International packaging group Coveris Holdings has sold its Spanish business Coveris Rigid Spain, including an injection molding plant, to the...    More

PSB Industries acquires plastic closures specialist

July 31, 2014 3:47 pm ET

French packaging manufacturer PSB Industries has signed an agreement to acquire C+N Packaging Inc., which specializes in plastic closures for...    More

Private equity firm buys majority share of truck accessory maker

July 31, 2014 10:30 am ET

A majority share of Ann Arbor, Mich.-based truck accessory manufacturer Tectum Holdings Inc. has been acquired by Boston-based private equity firm TA ...    More

Image

Impact-resistant window maker buys competitor for $111 million

July 31, 2014 3:07 pm ET

PGT Inc. is acquiring CGI Windows & Doors Holdings Inc. for $111 million as part of a plan to grow strategically by buying businesses with...    More

Buyer plans to sell former Hoover molding, assembly plants

July 31, 2014 2:06 pm ET

A former Hoover manufacturing plant with 150 injection machines in El Paso, Texas, and a nearby maquiladora plant in Juarez, Mexico, changed owners an...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events