Tomypak Holdings Bhd plans to acquire poly-packaging company EB Packaging Sdn Bhd at a price of RM105 million (US$23 million).
Established in 1995, EB Packaging manufactures and sells flexible plastic packaging materials, such as stretch and pre-stretch films, industrial packaging, protective packaging (bubble wraps and polyethylene foams) and adhesive tapes.
It has manufacturing plants in Batu Pahat and Bandar Tenggara in Johor. Its principal markets are Malaysia, Singapore and Indonesia.
The acquisition, if successful, will allow Tomypak to own EB Packaging, a well-established player in the flexible plastic packaging industry, and increase its market share in the flexible plastic packaging industry given that both had different customer segments.
Tomypak customers are mainly food and beverage manufacturers, while EB Packaging customers come from various industries that include food, medical, electronics, industrial packaging, building materials and furniture amongst others.
The proposed acquisition will allow Tomypak and EB Packaging to tap each other’s customer base.