News

9 December 2021

SCGP has announced completion of share acquisition of “Deltalab” in Spain,entering global medical supply and labware market; recognizing revenue Dec. 2021

SCGP has announced completion of share acquisition of “Deltalab” in Spain,entering global medical supply and labware market; recognizing revenue Dec. 2021

SCGP steps fully into the global market for medical supplies and labware as part of strategic expansion of integrated solutions for customers, announcing the completion of its 85% Merger and Partnership (M&P) investment in Deltalab, S.L. of Spain with an export network of 125 countries. Revenue recognition begins this December.

Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP, reveals that the company’s strategic expansion of integrated customer services aims at a business expansion plan to meet consumers’ diverse needs, particularly those involving healthcare and medical. This is in response to growing trends of healthcare as countries around the globe are entering an aging society. The trends can be seen in the 2019 total market value of healthcare and medical products in Europe of US$26 billion (approx. 810 billion Baht) and in Asia Pacific of US$48 billion (approx. 1.5 trillion Baht) with an expected annual growth rate of between 7% and 9% (Reference: LEK Consulting, 2019-2024F).

Most recently, SCGP has successfully acquired 85% of shares in Deltalab, S.L. (Deltalab), a registered company in Spain with expertise in the manufacture and distribution of medical supplies and labware. The investment of 84.9 million Euro (3,270 million Baht) was made through International Healthcare Packaging Co., Ltd., an SCGP’s wholly-owned company. Revenue recognition in the company’s financial statement begins from December 2021 onward.

Deltalab has more than 15,000 stock keeping units (SKUs) and an annual output of 250 million pieces, much of which are exported to 125 countries around the globe. Its products range from liquid containers and tubes for vacuum system, traceable blood collection tube sets for hematology, microtubes and flexible plates for real-time polymerase chain reaction (PCR) tests as well as various types of pipettes for liquid handling and swab test sets, etc.

For the 12-month period from October 1, 2020, to September 30, 2021, Deltalab generated 84.3 million Euro (approx. 3,245 million Baht) in revenues and 19.3 million Euro (approx. 740 million Baht) in after-tax profits. Its assets are valued at 44.7 million Euro (approx. 1,720 million Baht).

“The present investment in Deltalab will further expand our customer base in Europe, Asia Pacific as well as other regions. It will make SCGP’s product portfolio more diverse by building on our expertise in the manufacture and distribution of packaging products in an integrated manner. It will enhance our ability to provide services at the global level, and synergize our businesses through exchanges of experience and knowledge to jointly develop new products and expand new markets.” Mr. Wichan says.

In 2021, SCGP has worked assiduously to strengthen growth in accordance with its organic growth expansion plan and Merger and Partnership strategy. Thus far, it has been able to close four major deals with investments approx. 20,000 million Baht, generating over 16,000 million Baht in revenues (at the time of deal closure). These include Go-Pak Group, a leading provider of foodservice packaging solutions in the UK, Europe and North America; Duy Tan Group, Vietnam’s leading producer of rigid plastic packaging products; Intan Group, Indonesia’s leading producer of corrugated containers; and, most recently, Deltalab Group, which is a great business leap to respond to global trends in hygiene and healthcare.