30 June 2021
SCGP makes inroads into medical supplies and labware industry Signing of a share purchase agreement to acquire and 85% stake in Deltalab, S.L., Spain
SCGP is pressing ahead with the integrated consumer solutions strategy by entering into the medical supplies and labware industry in response to a global megatrend, which sees heightened consumer awareness of hygiene and healthcare, and changing demographics with growing aging population. An agreement has been signed to acquire 85% of Deltalab, S.L. in Spain, a recognized European manufacturer and distributor of high-quality medical supplies and labware. This will enhance the company’s business potential by elevating SCGP’s customers and products portfolio and enriching global services capabilities.
Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP reports that one of the global megatrends is consumers’ heightened awareness of healthcare as well as the changing demographics which sees multiple countries with growing aging populations, both of which require laboratory diagnostic testing. Such developments have led to growing demands for healthcare and medical products, which have become a high-growth segment with a market value of about US$26 billion (approx. 810 billion Baht) in Europe and US$48 billion (approx. 1.5 trillion Baht) in Asia Pacific. The market is expected to grow by between 7% and 9% a year.*
Mr. Wichan says SCGP is determined to provide integrated consumer solutions and expand into other business to fulfill the diverse needs of customers. The company wants to expand into downstream operations, particularly those consumer goods having to do with targeted lifestyle, healthcare, and medical. That’s why SCGP is entering into the medical supplies and labware industry which is high prospects, and therefore has agreed to acquire 85% of Deltalab S.L. (or Deltalab), a medical supplies and labware specialist. The deal is expected to be completed by the third quarter of this year.
As a recognized European manufacturer and distributor of high quality in medical supplies and labware based in Spain, Deltalab, S.L. has more than 15,000 SKUs and annual output of 250 million pieces. Products ranges from Liquid containers and tubes for vacuum system, Traceable blood collection tube set for Haematology, Microtubes and flexible plates for real time PCR, Various types of pipettes for liquid handling, Cold (Cryogenic) storage system for vaccine and Molecular Biology, Swab test set, Hygine & Safety industrial packaging ,and others. Some of these products are exported to over 125 countries. In 2020, Deltalab, S.L. recorded revenue of 72.7 million Euro (approx. 2,800 million Baht) with assets of 54.3 million Euro (approx. 2,100 million Baht) at the end of 2020.
“This investment is an important step that allows SCGP to bring its experience and expertise in the manufacture of performance and polymer packaging as well as production knowledge including injection molding process, similar
production technologies, and high level of research and development related to healthcare and medical etc. to develop innovations and new solutions to fulfill increasing consumer needs,” Mr. Wichan says.
“SCGP will implement its strategy to forge cooperation with partners with regards to technology exchange and joint research and development in order to create more diverse products, expand our customer base, and boost our capability to offer world-class services. Moreover, an important foundation would be laid for expansion into businesses relating to healthcare and medical segment in Asia to realize sustainable growth and higher value-added prospects for SCGP.”
* Reference : LEK Consulting (2019-24F)