Top Glove inks MOU to buy Eastern Press for RM47.25m

Singapore

MALAYSIA-BASED glove-maker Top Glove Corporation Bhd has entered into a memorandum of understanding on Friday to acquire Eastern Press Sdn Bhd for RM47.25 million (S$15.1 million) in cash, the same day that it announced a 51 per cent rise in net profit to RM98.6 million for the fourth quarter ended Aug 31.

A term sheet was inked between Top Glove and YS Hoong Sdn Bhd, which is the current owner of Eastern Press, a printer and supplier of packaging material.

"The proposed transaction is expected to provide the group with synergistic benefits, enabling it to improve its supply chain coordination, thereby allowing for flexible planning and better delivery time in relation to the supply of packaging material for its glove products, as well as better costs and quality cont…