Dipped Products buys Thai glove firm for $ 11 m

Monday, 25 November 2024 03:17 - - {{hitsCtrl.values.hits}}

Dipped Products PLC last week acquired 100% equity of Hi-Care Thai Gloves Company Ltd ., in Thailand for $ 11 million.

The Company said the move follows the completion of the due diligence study, and completion of the Share Sale and Purchase Agreement (SSPA) on 21 November 2024.

The acquisition and funds will be by Dipped Products (Thailand), a wholly-owned subsidiary of the Company.

“This strategic acquisition aligns with the Company’s objectives to expand its global footprint in the rubber glove manufacturing industry and strengthen its presence in international markets,” said DPL in a filing to the Colombo Stock Exchange on Friday.

Set up in 2013, Hi-Care Thai Gloves, has a production capacity of 1 billion gloves per annum.

DPL’s manufacturing operations in Thailand, set up in 2005, made revenue of Rs. 6.7 billion in FY24 and has 477 employees. The latest acquisition is the first since 2023 when DPL acquired Rozenbal Polska in Poland and acquisition of Icoguanti, Italy in 2016.

DPL operates manufacturing facilities both in Sri Lanka and Thailand, complemented by marketing arms in Italy, France, Poland, Middle East and an Electrician Glove testing facility in India. It caters to the diverse needs of a clientele spanning 70 countries.

DPL, which also has extensive interest in plantations, in FY24 achieved a revenue of Rs. 74 billion and an after tax profit of Rs. 5.8 billion, down by 8% and 32% respectively from the previous year. In the first half of FY25, Group revenue rose by 10% to Rs. 40.4 billion and after tax profit by 14% to Rs. 2.2 billion.