Tomypak proposes RM120m acquisition of EB Packaging to rebuild capacity

Malaysian flexible packaging maker Tomypak Holdings has signed memoranda of understanding to acquire 100% of Johor-based EB Packaging Sdn Bhd for RM120 million, disclosed in a Bursa Malaysia filing dated 11 August. The deal is intended to restore manufacturing capacity lost after a fire at Tomypak's Senai plant in late 2021, which has limited output to its smaller Tampoi facility. Tomypak plans due diligence, an independent share valuation and consultation with Securities Commission Malaysia before completion.

Why this mattersThe acquisition shows a mid-size flexible packaging producer using M&A rather than rebuilding to restore capacity lost to a plant fire.

• Tomypak proposes to acquire EB Packaging Sdn Bhd for RM120 million
• It will buy a 59.3% stake from four named individual shareholders and the remaining 40.7% from RMCP Plastics Holdings Sdn Bhd
• The move follows a fire at Tomypak's Senai manufacturing plant in late 2021
• Manufacturing has since been limited to Tomypak's Tampoi plant at reduced capacity
• Tomypak is also increasing production capacity at the Senai plant
• Shares closed 8.54% lower at 44.5 sen on the day of the announcement, valuing Tomypak at RM191.85 million

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