Following the acquisition, EAC Industrial Ingredients is expected to achieve annual sales of around 110 mln dkr in Malaysia, which will make the country the business’s fourth-largest market after Thailand, Vietnam and Indonesia. Akashi will be included in EAC Industrial Ingredients’ accounts for five months of 2007 and will increase the business’ revenue, whereas the acquisition is not expected to impact 2007 earnings.
As a result of the acquisition EAC will also become 50% shareholder of the Malaysian company Amochem Sdh. Bhd, which is jointly owned by Akashi and the Dutch company BRB International.
Amochem formulates silicone products and the company’s customers comprise some of the same core industries as EAC Industrial Ingredients is addressing. However the suppliers of Akashi and EAC Industrial Ingredients Malaysia complement each other without conflicts. It is expected that Amochem’s sales can be increased significantly and the company will be included in EAC’s accounts as an associated company.
With its head office in Copenhagen, EAC controls three strategic businesses (EAC Foods, EAC Industrial Ingredients, and EAC Moving & Relocation Services) in Venezuela and Asia. The businesses are wholly owned by EAC, but organised as independent groups, each with highly experienced, locally based management teams. Each business is profitable beyond industry average with brands and market positions representing high, intrinsic value.
Today, EAC Industrial Ingredients’ distribution network covers eight Asian markets, Thailand, India, Vietnam, Indonesia, the Philippines, Malaysia, Singapore and Cambodia from 18 offices, and represents more than 150 international manufacturers of industrial ingredients. The business strategy is to become a market-leading one-stop supplier to selected industries in the current markets, and at the same time establish a position in new markets.
According to EAC, acquisitions are an important tool in this process, and EAC Industrial Ingredients will continue investigating acquisition opportunities in both existing and new markets.
