Top Glove inks agreement to buy Eastern Press for RM46.25 million

PETALING JAYA: Top Glove Corp Bhd has entered into a sale and purchase agreement to acquire the entire stake in printing and packaging supplier Eastern Press Sdn Bhd for RM46.25 million cash.
On October 13, Top Glove announced that it had entered into a term sheet with Eastern Press' major shareholder YS Hoong Sdn Bhd for the proposed acquisition.
Top Glove said the acquisition is expected to provide the group with synergistic benefits, enabling it to improve its supply chain coordination, allowing for flexible planning and better lead time in relation to the supply of packaging material for its glove products, as well as better costs and quality control.
It said the RM46.25 million purchase consideration arrived at on a willing-buyer willing-seller basis, after taking into consideration the net profit guarantee of RM4.5 million provided to the company for the financial year ending October 31, 2018.
The purchase consideration will be funded via bank borrowings and internally generated funds of the group.
Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the first quarter of 2018.
Top Glove shares closed slightly lower by 0.16% at RM6.39 on Friday with 1.64 million shares done.