Stockholm-listed food and beverage packaging manufacturer Duni AB has signed an agreement to acquire in total 60% of the shares in Terinex Siam Co. Ltd., a leading converter and exporter of disposable products, predominantly paper napkins. Based in Thailand, Terinex Siam specializes within the professional segment in Southeast Asia. The acquisition is planned to be completed by mid-August.
With approximately 100 employees, Terinex Siam is located in close proximity to Bangkok. Key target markets in Southeast Asia include Thailand, Singapore and Australia. The product offering includes napkins and other disposable packaging products, such as aluminum foil and paper coasters.
Duni acquires 49% of shares directly and 11% of shares indirectly through a joint venture company in Thailand.
Terinex Siam has a turnover of approximately THB 350 million, with an operating margin of approximately 20%, and will contribute positively to the profitability of the New Markets business area. Purchase of shares will affect Duni’s net debt with approximately SEK 110 million which is covered within existing loan facilities.
“The acquisition of Terinex is an important step in our goal to increase growth in South East Asia. Combining Duni’s premium offer with Terinex and its production capacity creates favorable conditions for increasing market share. It is therefore very encouraging that we now agreed with the founding families to jointly develop the business,” says Thomas Gustafsson, CEO of Duni.
Dr. Adul Amatavivadhana, Chairman of Terinex Siam, adds “We look forward to a fruitful relationship between Terinex Siam and Duni. Working together, we can truly accelerate growth, both in Thailand and our export markets.”