TPBI expands packaging portfolio with three foreign acquisitions
Thai packaging firm TPBI has signed agreements to acquire two companies outright – UK-based Intelipac Paper Manufacturing (IPM) and Intelipac (ITP) – and a major stake in a third, Intelipac Australia (ITPA), in a move that will enhance its product portfolio to comprise both paper and reusable plastic packaging products.
This will, in turn, improve its capacity to attract new customers and retain existing customers, the listed company said on Monday.
The acquisitions, executed to implement its transformation strategy as part of campaigns to strengthen its existing business and enter new businesses through acquisitions, will enable it to start earning fresh revenue of around Bt1 billion per year as early as this quarter, and thus achieve the firm’s full-year 2018 growth target, TPBI chief executive officer Somsak Borrisuttanakul said.
The investments, intended to fuel expansions and enhance TPBI’s strengths, will cost around Bt600 million and will be financed by the proceeds from the company’s 2016 initial public offering.
TPBI International, a fully owned subsidiary, has signed agreements to buy all ordinary shares in IPM and ITP – both UK-based companies – and 25 per cent of the ordinary shares in ITPA, with the remaining 75 per cent of the Australian firm held by ITP, Somsak explained.
IPM is a manufacturer and supplier of paper packaging products to the food and bakery industries and shopping malls in the UK, while ITP engages in the trading of plastic packaging products – such as reusable bags, and bags for vegetables, fruits and other foods – in Australia, the UK and other European countries.
ITPA, meanwhile, trades in plastic packaging products in Australia.
The acquisitions will increase TPBI’s competitiveness in the world market through an entry in the business of producing and supplying eco-friendly paper packaging products, with a manufacturing base in the UK and channels for distribution of reusable plastic packaging in Australia, the UK and other European markets, the CEO said.
They will allow TPBI to produce reusable bags and use the channels to fulfil market demand, and will add to the variety of reusable products that the company can produce as it will be able to reuse plastic granules as raw materials, he added.
The acquisitions will also enable the company to tap the rising global demand for eco-friendly packaging products.
Moreover, TPBI is seeking to employ paper packaging for the research and development of new products for distribution in Thailand, Somsak said.
