Thai firm to acquire Starprint Vietnam for US$44.7 million
The merger is expected to close in the third quarter of 2023.
Bangkok-based SCG Packaging Plc (SCGP) is looking to acquire a 70% stake in Starprint Vietnam JSC to expand its operations in the country.
| An SCG Packaging Plc plant in Bien Hoa, Dong Nai. Photo: scg.com |
SCGP will purchase 70% of ordinary shares “for a total enterprise value of not exceeding VND1.05 trillion or approximately 1.53 billion Baht (US$44.7 million),” the company’s CEO Wichan Jitpukdee said in a public statement on April 25.
“This merger and partnership (M&P) will be carried out through a strategic partnership with Starflex Public Co Ltd, a leading flexible packaging manufacturer based in Thailand, which plans to hold a 25% stake in SPV,” the Thai executive said.
This transaction is proceeding under the standard M&P procedures and is expected to close in Q3/2023, he added.
The deal underscores SCGP’s commitment to serving Vietnam’s burgeoning packaging industry, Wichan said.
The deal will “enhance the company’s capability to meet the growing needs of customers in terms of branding and marketing activities,” he said.
“This M&P would enable the synergy with other SCGP’s subsidiaries in the country in the form of cross-selling opportunity and customer portfolio expansion.”
SCGP will directly engage in more collaborative projects on new product development for innovative and sustainable packaging solutions in Vietnam and ASEAN from now on, he said.
SPV is one of Vietnam's largest producers of offset folding cartons, rigid boxes, and luxury packaging, with distinctive printing capabilities and quality.
The company owns a prominent customer base and long-term business relationships with renowned multinational and domestic companies.
In 2022, the Vietnamese business posted a total revenue of VND1 trillion (US$41.15 million) and a net profit of VND92.5 billion (US$3.94 million).
SPV had total assets worth VND440 billion (US$18.7 million) and a combined capacity of 16,500 tons of offset printing per year and eight million pieces of rigid boxes per year.
The Vietnamese manufacturer has built two production plants in the Long Binh Industrial Park in the southern province of Dong Nai.
SCG Packaging is a member of the Thai SCG Group. The company entered Vietnam in 1992 and has been involved in cement production, packaging, and chemicals. The group has 24 member companies in Vietnam with more than 16,000 employees.
