SCGP completed Two M&P Deals to Enhance Portfolio of Packaging With High Growth, Enlarging Customer Network for Packaging Solutions Services, Extending Further in Medical Supplies and Labware

SCGP has acquired 100% stake in Law Print, a prominent packaging solution provider in the United Kingdom and Europe, with aims to strengthen sales channels and expand customer network. Additionally, SCGP has completed the M&P for 85% stake in Bicappa, a renowned medical supply and labware manufacturer in Italy. This acquisition would enable the extension of business to the scientific equipment market, particularly in “pipette tips”, along with the access to cutting-edge manufacturing technology. Financial performance from these investments will be consolidated starting November 2023.

Wichan Jitpukdee, Chief Executive Officer of SCG Packaging Public Company Limited or SCGP, disclosed that the company has progressed with investments in packaging solutions businesses and expands its sales channels to reach new customer segments in high-growth markets. Recently, a merger and partnership (M&P) was completed for 100% stake in Law Print & Packaging Management Limited (Law Print), a prominent packaging solution provider based in Stockport, United Kingdom. The transaction was made through SCGP Solutions (Singapore) Pte. Ltd. or SCGPSS, a wholly-owned subsidiary of SCGP. The investment amount for this acquisition is GBP 10.68 million, equivalent to approximately THB 475 million. As of the end of 2022, Law Print recorded revenue of GBP 12.2 million or approximately THB 570 million, with a core net after tax of GBP 2.7 million or approximately THB 125 million. The total assets are valued at GBP 6.5 million or approximately THB 300 million.

Law Print offers extensive packaging solutions services ranging from design, printing, and quality assurance through international logistics management, with network of accredited packaging manufacturers and suppliers. Law Prints’ key capabilities are dedicated to catering the needs of customers, especially in pet food industry, with detailed analysis for in-depth understanding of the evolving packaging requirements. Law Print effectively fulfills clients’ demands and connects them with high-quality flexible packaging suppliers including the sourcing of SCGP flexible packaging products for UK & European clients.

Simultaneously, SCGP has broadened its investments in the medical supply business while also strengthen its sales channels. In this regard, SCGP has entered into an agreement to acquire 85% stake in Bicappa Lab S.r.L., or Bicappa. Based in Roletto, Italy, Bicappa is a renowned medical supplies and labware manufacturer in Europe, specializing in pipette tips. This acquisition, valued at EUR 3.23 million or approximately THB 125 million, is made through Deltalab, S.L. (Deltalab), an 85% owned subsidiary of SCGP. For the last twelve months ending 30 June 2023, Bicappa recorded revenue of EUR 3 million, approximately THB 115 million, core profit after tax of EUR 0.62 million or approximately THB 23.5 million, and total assets worth EUR 2.4 million or approximately THB 90 million.

Bicappa is one of the major-size manufacturers of pipette tips in Europe

Bicappa is one of the major-size manufacturers of pipette tips in Europe. The company poses with automated production and precision mold designs. This investment will enable Deltalab to promptly augment its pipette tips production capacity and gain access to the technology and design of injection mold for auto-pipetting with high precision. Furthermore, this investment also represents a potential expansion into other SCGP ventures in ASEAN to foster future growth in the medical supply business.

“SCGP moves forward with strategic expansion for quality growth. These investments in the comprehensive packaging solution will amplify our sales channels and broaden our packaging business into the global market. Venturing into the medical supply sector will further solidify our growth potential with the widening customer base, augment production capabilities, and enhance our business throughout the entire value chain. The financial performance of these 2 deals will be consolidated from November 2023 onwards.” said Wichan.

Published on: Oct 27, 2023

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