Daibochi acquires flexible plastic packaging player for RM125m

May 11, 2019 Off By Sebastian Reisig

Flexible packaging manufacturer Daibochi Bhd (formerly Daibochi Plastic and Packaging Industry Bhd) has proposed to acquire the entire equity of flexible plastic packaging (FPP) player Mega Printing & Packaging Sdn Bhd (MPP) for RM125 million cash.

Established in 1997, Malacca-based MPP manufactures downstream flexible packaging comprising roll-form and pre-made pouches with laminated structures mainly for food & beverage applications, including confectionary, snacks, noodles and powdered beverages.

The purchase consideration, which will be funded through internally-generated funds and/or bank borrowings, represents an enterprise value over earnings before interest, tax, depreciation and amortisation of 8.07 times based on MPP’s audited financial results for the financial year ended Dec 31, 2017.

Daibochi managing director Thomas Lim said getting on the acquisition trail places Daibochi on the higher growth trajectory, even as it strengthens its position as a super regional player in the FPP segment.