Top Glove to buy surgical gloves maker Aspion

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, Top Glove announced 24 Nov.

While final terms for the acquisition of Aspion have yet to be agreed, Adventa has agreed to only negotiate with Top Glove until 15 Jan 2018, according to the Malaysia-based company.

The purchase price, it said, 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 to 18 times of the 2018 target after-tax profit.”

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.