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Business deals

Thailand's SCG Packaging acquires UK peer for up to $182m

Company has cash to grow after gaining access to Europe and US

SCG Packaging raised 45.3 billion baht ($1.5 billion) in the country's second-largest IPO of 2020. (Screenshot from company website)

BANGKOK -- Thai chemical giant Siam Cement Group's packaging arm settled a deal to acquire its British competitor Go-Pak UK on Wednesday, taking advantage of rising demand for food containers in the coronavirus-induced delivery boom.

SCG Packaging will initially pay 77.5 million pounds ($106 million) to buy the entire 100% stake of Go-Pak. Then, it will make second and third payments based on the British company's financial performance in 2021 and 2022. Those additional payments will range from 30 million pounds to no more than a total of 56 million pounds, bringing the final acquisition cost to between $146 million and $182 million.

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