KUALA LUMPUR, MALAYSIA (Oct. 4, 2:15 p.m. ET) — Malaysia's Scientex Bhd has reached an agreement to buy GW Plastics Holdings Bhd for 283.2 million Malaysian ringgit (US$92.63 million) in cash and guaranteeing current debts.
Scientex subsidiary Scientex Packaging Film Sdn Bhd will take over Great Wall Plastic Industries Bhd and GW Packaging Sdn Bhd, GW Plastics said in a filing with the Malaysia stock exchange.
The takeover, to be completed by the first quarter of next year, will boost Scientex's industrial cast film production capacity to 154,000 metric tons per year, from 120,000 metric tons.
The deal also will put Scientex into the expanding global food and beverage market segment via GW Plastics' blown film, and downstream printing and lamination facilities.
The acquisition increases Scientex's export base, since 97 percent of GW Plastics products are exported to international markets.
Though global markets were impacted by the ongoing economic crisis in the West, the plastics packaging market was projected to maintain a steady growth. Growth market patterns would also switch to Asia Pacific and other emerging economies from the traditional European and American markets, said Scientex, in its own filing with the Malaysia stock exchange.
The company also cited plans by GW Plastic and GW Packaging to increase production capacity in the United States, China, Russia and Africa.