Nexgram acquires medical plastic firm, enters vaccine bottling business
14 Aug 2020
Medical device provider Nexgram Holdings Bhd (Nexgram) is acquiring medical plastic firm Arita Plastics Industries (M) Sdn Bhd (Arita) to manufacture and supply biomedical materials, life-saving medical devices, medical compounds, and personal protective equipment and plastic sheets as alternative material to borosilicate glass vials for COVID-19 Vaccines.
In a bourse filing Aug 13, Nexgram said Arita also manufactures high quality optical clear extrusion plastic sheets in a dust-free environment to produce high technology products such as LCD panel, light guide panel, and thermoforming & vacuum forming products for Malaysia, South East Asia, Australia, Japan, China/ Hong Kong, India, Europe and South Africa.
Nexgram said its unit Nmed Industries Sdn Bhd had inked a share sale agreement with the Datuk Lim Theng Hooi, Datin Khoo Phaik Ee, and Teoh Ean Kee to acquire combined 60% equity interest stake in Arita for RM30 million.
In a separate statement, Nexgram executive director Mazru Mat Yusof said the rationale for the acquisition is in line with the upsurge in demand of medical personal protection equipment including face shield for hospital and schools, hospital intubation and gloves, as well as upcoming covid-19 vaccine bottling across the globe due to the unprecedented global pandemic event.
“Covid-19 has created higher safety and hygiene awareness across all industries.
“As a result, the medical plastic industry is expected to undergo a structural step-up in demand with rising awareness on the importance of personal protection, hospital demand, and coming vaccination supplies markets.
“The acquisition will enable Nexgram to leverage on Arita’s existing products and services to further expand its clientele and business, providing a more robust bottom to Nexgram Biomedic, the medical division of the group,” he said.
Nexgram expects the acquisition to be completed in October 2020.
At 9.05am, Nexgram rose 7.69% or 0.5 sen to 7 sen, valuing it at RM165.28 million.
Source: The Edge Markets