Top Glove enters exclusive talks to buy medical gloves business from Adventa
TOP Glove Corp has entered into exclusive negotiations to buy the medical gloves business of Adventa Capital in a cash-and-shares deal.
The final terms for the target business, Aspion, have yet to be decided, but Adventa has agreed to only negotiate with Top Glove until Jan 15, 2018.
Top Glove, a Malaysia-based rubber-glove maker, said that the purchase consideration will be based on Aspion's after-tax profit, a possible guarantee by Adventa in case of a profit shortfall in 2018, and a possible multiple of 16 to 18 times of the 2018 target after-tax profit.
If successful, Top Glove said that it will retain the existing leadership of Aspion.
Top Glove said that the acquisition will establish the group as the largest surgical glove exporter in Malaysia and one of the largest surgical-glove makers around the world. It also confers benefits in access to new technologies, gross profit margin and geographical reach.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
AEM Holdings Q1 net profit tumbles 85% to S$2.4 million
JPMorgan, Nomura limit Segantii exposure on Hong Kong case
Insurance firms deny Chevron’s US$57 million claim for Iran oil seizure
UOB awards Wong Kan Seng over S$400,000 in shares
US: Wall St opens lower as megacaps drag
Olam tops Louis Dreyfus’ offer for Australia’s Namoi Cotton as takeover battle heats up