THAILAND – Thailand-based SCG Packaging has completed the acquisition of Go-Pak, a leading food service packaging solutions provider based in the United Kingdom.
The Thai-based packaging company which is a subsidiary SCGP Solutions Singapore agreed to purchase a 100% stake of Go-Pak from its existing shareholders and has already initiated a first payment of £77.5 million (about US$93.34 million).
Based on the agreement between SCG and the shareholders of Go-Pak, second and third payment will be based on Go-Pak’s incremental financial performance for the next two financial years.
The pay-outs are expected to range from £30 million to no more than the total of £56 million, SCG Packaging said in a statement.
“This transaction is in line with the strategy of expanding the client base and increasing the capability for downstream packaging production,” Wichan Jitpukdee, CEO of SCG Packaging, said.
Headquartered in Bristol, Go-Pak also operates production facilities in Southern Vietnam and predominately manufactures packaging for the ready-to-eat and takeaway food and beverage business in the UK, European and North American markets.
The company which reported full-year revenues of £68.7 million at the end of Q3 2020 has an annual production capacity of 4 billion units and over 250 products categories.
Meanwhile, SCG Packaging offers fibre-based packaging, performance and polymer packaging for a range of products including food service, with over 40 facilities across Vietnam, Indonesia, Malaysia, the Philippines and Thailand.
SCGP estimates the food and beverage industry in Asean will grow by 6-7% annually between 2019 and 2024, bolstering demand for food packaging.
The company aims to expand its business in Asean and countries with high market potential driven by a large population and high spending.
The acquisition of Go-Pak will contribute towards enabling the Thailand based industrial conglomerate achieve its ambitious expansion goals.
Go-Pak will for instance help SCG expand its foodservice packaging portfolio, while also giving it access to a greater customer base in the UK, Europe and North America.
It will also strengthen its production and distribution capabilities and also grow its position in the ASEAN market.
Commenting on the acquisition, Adam Anderson, Go-Pak managing director, said: “Joining the SCG family of businesses is a very exciting prospect for Go-Pak.”
“Not only does this mean a continuation of the great service for our customers, but being part of such a large integrated packaging group will enable us to offer further international support and a wider product range for our current and future customers in the UK, Europe and US,” Anderson added.
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