Among the acquisition deals in Malaysian corporate scene of late, Luxchem has moved to buy a compatible chemical products company for $11 million while condom manufacturer Karex has purchased a US-based condom making business, buying the intellectual property as well.
Luxchem to buy Transform Master for $11m
Luxchem Corp Bhd is acquiring chemical product manufacturer Transform Master Sdn Bhd for MYR46 million ($11.01 million), which will entail the latter’s business in manufacturing of chemical products including rubber latex chemical dispersions.
In its filing with the local bourse, Luxchem said the purchase consideration would be settled through MYR36.8 million cash and an issue of 5.18 million new shares in Luxchem at an issue price of MYR1.7744 per share.
The announcement said Luxchem has entered into a heads of agreement (HoA) with Lee Pei Pei, Lee Chee Sian, Pok Jiun Lim and Oh Wei Wah for the acquisition of Transform Master.
The proposed acquisition is subject to a legal, financial and commercial due diligence to be conducted and completed by Luxchem within 60 days from the date of the HoA in respect of the accounts, assets, personnel and business of Transform Master, it added.
The proposed acquisition is conditional upon the vendors and Luxchem entering into a definitive agreement within 60 days following the date of the HoA, or such further extended date as the parties may mutually agree upon and the fulfillment of the conditions precedent.
Karex to buy US condom manufacturer TheyFit for $1.3 million
Condom manufacturer Karex Bhd has, through its wholly-owned subsidiary Karex Holdings Sdn Bhd, signed an asset purchase agreement to purchase certain assets from Georgia, US-based TheyFit LLC worth $1.3 million.
The acquisition, which includes TheyFit’s intellectual property, will boost Karex’s own brand manufacturing (OBM) business, the company said in a statement.
Under the agreement, the condom manufacturer will acquire certain assets comprising the intellectual property including the TheyFit trademark for the condoms manufactured, all approvals to carry on its business including the Food and Drug Administration (FDA) approvals, the websites, the distribution agreement, business information, and inventory.
Chief executive officer Goh Miah Kiat said with the intellectual property and patents such as FitKit and the FDA approvals, Karex would be able to build on its platform.
“FitKit is a patented measurement kit which allows consumers to customise their size of condoms just like tailor-made clothes or shoes. GP will manage this expansion plan which I believe will certainly take our OBM business to the next level,” he added.
Karex’s subsidiary in the US, Global Protection Corp (GP), will manage the purchased assets from TheyFit moving forward.