ADB pulls AAPH as 51% priority for additional business support

#ADB #Thunhoon -ADB opens the way for AICA ASIA PACIFIC HOLDING PTE. LTD. (AAPH) to buy additional shares of ADBS, a subsidiary, by purchasing 51% of the shares, looking at such cooperation. It will help strengthen the business. And there are more channels for distributing glue and chemicals both in Thailand and abroad.

Today (September 19, 2024) AAPH signed an agreement to purchase additional shares of ADB Sealant Co., Ltd. or ADBS, a subsidiary of Applied DB Public Company Limited or ADB, holding 99.99% of the shares. AAPH will hold 51% of the shares after the capital increase. ADBS will have a new registered capital of 645.09 million baht.

ADBS is a leader in the production and distribution of industrial adhesives for the footwear, furniture, leather industry, and sealant products in tube form (cartridge) and in large packages that meet the needs of use in the real estate and construction industries. Decorative industry automotive industry and electronics industry. Including adhesive products in small packages for household use (DIY products). ADBS has technology and professional production experience for more than 40 years, with a customer base in Thailand and overseas customer bases in ASEAN, the Middle East, Europe, and Africa. and South America Including providing contract production services for leading international brands.

Acquisition of shares of AAPH, a wholly-owned subsidiary of AICA KOGYO CO., LTD., a Japanese organization that has been in business for more than a century. With a strategy to provide high value-added products to meet customer needs and increase mutual benefits within the group, AAPH has significantly expanded its industrial adhesive business. It operates through 21 subsidiaries and has 22 factories in 8 countries in the Asia Pacific region. There is an average growth rate of the chemical business abroad of 10% per year, especially in Indonesia and Malaysia where there are powerful brands. It has a sales network and a strong presence in the retail market.

The ADBS sealant product is considered a new product that complements AAPH’s product portfolio in the international market. including solvent-based adhesive products (Solvent-based adhesive) that ADBS has a high market share in Thailand When working together, we can take advantage of technology. Help promote the plan to expand market share of adhesives. It is a vertically integrated supply chain that integrates production and sales.

The collaboration between the two companies will enhance our competitiveness through leveraging the power of our brands and sales networks both in Thailand and abroad. Increase production proportion to benefit from scale Strengthen and diversify the brand Increase product variety This strengthens the company’s market position in retail markets in Asia.

Mr. Wang Wanapaison, CEO of ADB and Chairman of the Board of ADBS, said: “The collaboration between ADBS and AICA Asia Pacific will accelerate the exponential growth of our adhesives and sealants businesses by complementing each other’s product portfolios. especially in Indonesia 

The transaction is expected to close in the fourth quarter of 2024, and ADB will retain a 49% stake in ADBS. ADB and AAPH will jointly manage the joint venture moving forward. Create better value and benefits.