Malaysian flexible packaging converter Daibochi is to acquire Mega Printing & Packaging (MPP) for RM 125 million (US$30m).
Established in 1997, MPP manufactures roll-form and pre-made pouches with laminated structures mainly for food and beverage applications, including confectionery, snacks, noodles and powdered beverages.
The purchase is valued at more than eight times MPP’s EBITDA for the year ended 31 December 2017.
Daibochi’s managing director, Thomas Lim, said: “Getting on the acquisition trail places Daibochi on the higher growth trajectory, even as we strengthen our position as a super-regional player in the FPP segment.
“Moreover, the proposed acquisition effectively pools resources including human resources, technical expertise and market insight, in addition to enhancing raw material purchases and other efficiency measures that would be beneficial for customers of both Daibochi and MPP.”