Perangsang Selangor Acquires Plastic Injection Molding Firm

Jun 2019

Kumpulan Perangsang Selangor Bhd (Perangsang Selangor), a corporate entity owned by the state of Selangor, is buying a 100% stake in Toyoplas Manufacturing, an integrated plastic injection molding firm. The conditional share sale agreement for the acquisition has been signed, and is awaiting completion by the end of 2019. The acquisition is anticipated to contribute positively to Perangsang Selangor’s financial performance from the third quarter ending in September. As an investment holding company, Perangsang Selangor has focused investments in four core assets spanning across the Manufacturing, trading, licensing and Infrastructure sectors. 

The purchase of Toyoplas will be fully funded by a combination of equity and term loans at a value of MYR 161.25 million (USD 38.85 million) and MYR 150 million (USD 36.14 million) respectively. Previously, the company acquired CPI Penang Sdn Bhd, another company in the sector as this purchase marks Perangsang Selangor’s deeper penetration of the market.

Toyoplas has seven Manufacturing plants across Shanghai, Dongguan and Nanning in China, Ulu Tiram, Muar and Senai in Malaysia and Jakarta in Indonesia. The facilities come up to a combined total area of one million sqft. The company’s revenue growth is stable, with a compound annual growth rate of 5.8% between 2015-2018.

The proposed acquisition was made based on the long-term prospects of the global plastic injection molding market, which was valued at USD 326 billion in 2018. Growth is expected to be sustained by rising demand from various underlying industries, which include automotive and Medical devices, home appliances and packaging solutions.

(Source: Malay Mail; The Star)

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