Japanese-based Mitsui and food container manufacturer, FP Corporation (FPCO) have entered an agreement to fully-acquire Malaysia-based Lee Soon Seng Plastic Industries (LSSPI).
Established in 1984, LSSPI is one of the leading manufacturers of functional food containers in Southeast Asia. It was being bought from Malaysian investment holding company SCGM. LSSPI capabilities cover the entire manufacturing process from product designing and moulding to delivery of the finished products. LSSPI primarily serves food manufacturers and packaging distributors in Malaysia, Singapore, the Philippines and other countries in Southeast Asia, as well as Australia.
LSSPI produces containers in high-volume like egg trays, bakery and fruits packaging amongst others.
The deal is valued at around US$123 million and its completion is subject to receiving necessary regulatory approval.
With the acquisition, Mitsui will hold 60% stake while FPCO owns the remaining 40% in LSSPI.
The acquisition will allow both partners to leverage LSSPI’s network and improve its production efficiency, and create functional food container products to meet market requirements and increase sales.
The growth in demand for functional food containers in Southeast Asia is driven by the rapid modernisation of retailing in the region as well as expansion in the food delivery business. With modernisation comes greater need for sophisticated food containers for the purpose of preventing food waste, including microwave-safe containers and containers that can both delay the product’s expiration date and increase its long-term storage.
