KUALA LUMPUR (June 10): ACE Market-listed AT Systematization Bhd has signed a letter of intent to acquire industrial glove maker, Pearl Glove (Malaysia) Sdn Bhd, for an undisclosed sum, subject to due diligence, regulatory and shareholder approval.
AT Systematization said the move is seen as a logical business expansion following the current burgeoning demand for gloves.
It said post-acquisition, the company plans to inject further capital and expertise in Pearl Glove with regard to the manufacturing of medical examination nitrile gloves to boost the latter’s capacity and product suite.
"AT Systematization feels that by investing in a turnkey glove company and adjusting for timing to adopt new machine lines and expertise, it will be ready to supplement the demand for gloves by year-end,” it said in a filing with Bursa Malaysia today.
It added that should the rise in demand be consistent, the company would be able to participate as an original equipment manufacturer, while investing in research and development to develop its own brand and products.
AT Systematization is an integrated designer and manufacturer of industrial automation systems and precision engineering solutions, while Pearl Glove is a pioneer status Malaysian company which primarily designs, develops and manufactures industrial gloves.