KUALA LUMPUR—Rubber-glove maker Top Glove Corp. Bhd. has signed a memorandum of understanding to acquire the Aspion surgical gloves business of Adventa Capital Pte Ltd.
While final terms for the acquisition of Aspion have yet to be agreed, Top Glove said in a Nov. 24 statement that Adventa has agreed to only negotiate with Top Glove until Jan. 15.
The purchase price will be based on Aspion's after-tax profit, a possible guarantee by Adventa in case of a profit shortfall in 2018 and a possible multiple of 16-18 times of the 2018 target after-tax profit, Top Glove said.
As well as gaining new technology and operational synergies, Top Glove said Aspion would enhance its profit margins as surgical gloves typically command higher selling prices than other glove products.