SINGAPORE (Jan 12): Top Glove Corporation is acquiring one of the largest surgical glove producers globally, Aspion, for RM1.37 billion ($434 million) from Adventa Capital.

On Nov 24, the group entered into a term sheet to negotiate the definitive agreements for the acquisition.

Following the completion of the acquisition, Top Glove will emerge as the global leader in surgical glove manufacturing.

It will not just provide the group with an expanded product range, but also full access to Aspion’s technology and innovations.

Of the total consideration of RM1.37 billion, RM1.23 billion will be satisfied in cash, while RM137 million will be satisfied via the issuance of about 20.5 million new Top Glove shares at RM6.68 each.

The group will fund the cash portion of the acquisition through bank borrowings.

The acquisition also comes with a profit guarantee of two years, up to a maximum of RM100 million.

In a media release issued on Friday, the group expects that the acquisition will propel it to be the number one surgical manufacturer globally; overcome entry barriers into the surgical glove market; access new technologies, manufacturing processes and proprietary materials; widen its portfolio and move up the value chain; substantial synergies through cross-leveraging expertise; expand presence in new regions; contribute positively to its overall profitability and growth.

Lim Wee Chai, executive chairman of Top Glove says, “We are confident our intended acquisition will further cement our leadership position in the glove industry and take our business to the next level of success.”

As at 3.26pm, shares in Top Glove are trading 8 cents higher at $3.03.