Thailand’s SCG Packaging Public Company Limited (SCGP) on Friday announced that it had completed the acquisition of a 75% stake in Intan Group, a leading corrugated container producer based in Indonesia. The deal expands SCGP’s product range, supply chain, and packaging development thanks to Intan’s vast customer base of companies in the consumer goods and food and beverages industries.
SCGP’s CEO, Wichan Jitpukdee, said the acquisition is part of the company’s growth strategy in Southeast Asia. Indonesia, the most populous country in the region, has long-term growth potential for SCPG to expand its fiber-based packaging business. SCGP entered the Indonesian market in 2013 and currently has interests through investment in five subsidiary companies there.
The acquisition will be executed by TCG Solutions Pte. Ltd. (TCGS), a wholly-owned subsidiary of Thai Containers Group Company Limited (TCG), which is a 70/30 joint venture between SCGP and Japan’s Rengo Company Limited. The initial payment for the acquisition will be IDR822 billion ($57 million), followed by the second payment, which will be based on Intan’s financial performance in the financial years of 2022 and 2023. The total payment is estimated to be no more than IDR859 billion ($60 million), SCGP said.
