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Construction group VIZIONE (7070) Vizione Holdings Bhd to buy 51% in glovemaker SSN Medical

In a statement, Vizione managing director Datuk Ng Aun Hooi (pic) said: “We are convinced this is a very viable business with good returns. We expect the proposed acquisition to be earnings accretive.”

PETALING JAYA: Integrated construction engineering group Vizione Holdings Bhd has proposed to pay RM5mil cash for a 51% majority stake in glovemaker SSN Medical Products Sdn Bhd.

Based on a filing with Bursa Malaysia, Vizione’s wholly owned subsidiary VIP Index Sdn Bhd has entered into a heads of agreement (HoA) with the sellers Ang Teck Leong, Lim Kiat Yee and Ravendran Uthrapathy for the deal.

Vizione and the sellers have 90 days from the date of the HoA to sign definitive agreements. The deal will be funded via internally generated funds and bank borrowings.

SSN’s operations are in Seri Kembangan, Selangor, and the 21-year-old company manufactures and sells latex medical gloves and condoms.

It exports around 80% of its products with the bulk going to the United States, China, Germany and other European countries.

Presently, it has nine manufacturing lines with a total capacity of over 500 million gloves and 150 million condoms per annum.

SSN is also exploring new opportunities in other high value-added medical disposables.

In a statement, Vizione managing director Datuk Ng Aun Hooi said: “We are convinced this is a very viable business with good returns. We expect the proposed acquisition to be earnings accretive.”

“SSN has also successfully carved a niche market producing specialty gloves such as elbow length latex medical gloves, as well as gloves for gynaecology use and gloves for chemotherapy use. In addition to serving as an original equipment manufacturer or OEM, SSN also has its own brand called ‘Hanser’, ” said Ng.

Ng also said Vizione has plans to add additional production lines to double SSN’s capacity to one billion gloves a year.

He pointed out that the Malaysian Rubber Glove Manufacturers Association anticipates the global demand for rubber gloves to hit 345 billion this year compared with 298 billion in 2019.

“In the long term, the global market for medical gloves is projected to reach US$70bil by 2027 with a trailing compounded annual growth rate of 12.4%, according to ReportLinker.”

https://www.thestar.com.my/business/business-news/2020/09/03/construction-group-vizione-to-buy-51-in-glovemaker-ssn-medical
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