March 22, 2012
Fumakilla to acquire Pesticide company in Malaysia, Indonesia
With an eye toward boosting sales in Southeast Asia, Fumakilla Ltd. said Wednesday (Mar 21) it will acquire one insecticide company in Malaysia and another in Indonesia.
Malaysia's Technopia Sdn Bhd generated about JPY3.4 billion (US$41 million) in sales in 2011 while Indonesia's PT Technopia Jakarta reported sales of around JPY800 million (US$9.6 million).
The major Japanese household insecticide company will pay a total of roughly JPY3.6 billion (US$43 million) for 70% stakes in the two subsidiaries of Texchem Resources Bhd, a Malaysian household goods company. The share transfers are expected to be completed by November 21.
Technopia's sales network extends to Thailand and Vietnam, where Fumakilla has yet to establish a presence.
By acquiring the two firms, the Japanese company hopes to take advantage of growing demand for pesticides in Southeast Asia. Higher overseas sales will also help Fumakilla stabilise its earnings since its Japanese sales are highly prone to seasonal fluctuations.