Kossan Rubber Industries has agreed to acquire a Singapore-based cleanroom products distributor for $11.9m (RM48.4m), as part of a wider move to expand its Cleanroom Division.
The Malaysian manufacturer entered into conditional share sale and purchase agreements on 18 August for the proposed acquisition of 100% of Inout Enterprise Pte (IOS) in Singapore and a 51% stake in Inout Enterprise in Thailand (IOT).
Kossan will acquire 1,852,576 ordinary shares in IOS, representing the entire equity interest in the company, from five vendors.
IOS is principally involved in the wholesale trade of cleanroom products and has more than 30 years of experience in trading and distributing cleanroom products.
The acquisition is intended to expand Kossan’s Cleanroom Division and broaden its cleanroom products business through the addition of an established distributor.
Kossan will also acquire 25,500 ordinary shares in IOT, representing a 51% equity interest in the Thailand-based company, for $3,930 (RM16,036.93).
IOT focuses on cleanroom consumables, including masks, gloves and wipes, as well as cleaning tools, equipment and related industrial supplies.
The two acquisitions are inter-conditional, with the acquisition of IOS subject to the completion of a restructuring exercise.
Kossan said the acquisitions will be funded through internally generated funds.
The transactions are expected to be completed by the end of the first quarter of 2027, subject to the conditions set out in the respective agreements.
The company said the acquisitions are expected to contribute positively to the group’s future revenue and earnings, but are not expected to have a material impact on its earnings, earnings per share, net assets or gearing for the financial year ending 31 December 2026.
