SCGP Completes the Acquisition of 70% Shares in Vietnam’s Duy Tan

SCG Packaging Public Company Limited (SCGP) announces the completion of its 70% merger and partnership (M&P) investment in Duy Tan Plastics Manufacturing Corporation, which follows the previous disclosure to The Stock Exchange of Thailand on February 9, 2021.

Payment for the 70% M&P stake is the immediate 3,630 billion VND (approximately 5,170 million Baht), followed by the second payment which will be based on Duy Tan’s incremental financial performance for FY2020 and FY2021, and when combined with the first payment will be no more than the total of 6,400 billion VND (approximately 9,120 million Baht). This transaction is through SCGP Rigid Packaging Solutions Pte. Ltd. (SCGPRS), which is a wholly owned subsidiary of SCGP. Duy Tan’s financial performance will be consolidated from August 2021 onward.

On a last twelve months basis (Q3/2020 –Q2/2021), Duy Tan recorded revenue of approximately 5,025billion VND (approximately 7,170million Baht), net profit after tax of approximately 650 billion VND (approximately 930 million Baht) and had assets of approximately 5,000billion VND (approximately 7,130 million Baht). 

Duy Tan is Vietnam’s leading producer of rigid plastic packaging products whose clients are mainly high growth consumer brands that are multinational companies and local brand owners of consumer/FMCG products. The company also manufactures branded home products, such as food wares and containers. This expansion via Merger and Partnership will enlarge SCGP’s customer base while reinforcing synergies through cross-selling, leveraging operational strength and resource pooling across operations. Moreover, this transaction affirms SCGP’s commitment to contribute to the vibrant consumer sectors’ supply chain and the economic growth of Vietnam.

SCGP is committed to fulfil the changes of preferences towards sustainable packaging trend globally and also offering products ranging from fiber-based packaging, to performance & polymer packaging and other diversified solutions, with facilities in over 40 plants across ASEAN. Listed on the Stock Exchange of Thailand on October 22, 2020, SCGP has a current market capitalization of approximately $8.2billion (270,000 million Baht). Please click www.scgpackaging.com for further details.