AICA Asia Pacific Acquires 51% Stake in ADB Sealant Co. Ltd.: Industrial Adhesives Leader Expands Influence

AICA Asia Pacific Holding Pte. Ltd. (AAPH) has recently inked an exciting share purchase agreement, capturing a 51% stake in ADB Sealant Co., Ltd. (ADBS), a prominent subsidiary of Applied DB Public Company Limited (ADB). This strategic move sees ADBS’s registered capital climbing to a robust 645.09 million baht, effectively solidifying its position as a powerhouse in the realm of industrial adhesives and sealants for diverse sectors such as real estate, construction, and electronics.

With a rich history of over 40 years and a reputation for pioneering technology, ADBS prides itself on manufacturing and distributing a wide array of products. Their offerings span from industrial adhesives for shoes, furniture, and electronics to sealants packaged for both large-scale usage and DIY enthusiasts. ADBS’s market reach is undeniably global, with a substantial footprint in ASEAN, the Middle East, Europe, Africa, and South America. Additionally, they cater to leading global brands with their OEM services.

Stepping into the spotlight, AAPH, a fully-owned subsidiary of the venerable Japanese corporation AICA Kogyo Co., Ltd., is poised to leverage this acquisition to not only meet but surpass growing customer demands with their high value-added product offerings. AAPH’s industrial adhesive operations have undergone remarkable expansion, boasting 21 subsidiaries and 22 plants scattered across eight countries in the bustling Asia Pacific region. The chemical business segment is projected to experience a healthy growth rate of 10% annually, especially in Indonesia and Malaysia, where AAPH’s presence is particularly strong.

Integrating ADBS’s sealant products into their portfolio is a masterstroke for AAPH. This move is set to not only broaden their product range but enhance their technological prowess and fuel market share growth. The vertical integration aims to fortify supply chains and foster deeper collaboration between these two industry titans, benefiting their brands and networks both within Thailand and overseas.

Wang Wanapaison, the visionary CEO of ADB and ADBS, couldn’t contain his excitement about the partnership. “The merger with AICA Asia Pacific is set to catapult our growth trajectory in the adhesive and sealant sectors, particularly in regions with immense market potential like Indonesia and Malaysia. Partnering with AICA Group, a world-class leader in adhesives and chemicals, thrills us as we jointly drive ADBS’s growth,” he enthused.

The transaction is on track to close in the fourth quarter of 2024, with ADB holding onto a 49% stake in ADBS. The joint venture will see collaborative management from both ADB and AAPH, steering towards mutual benefits and creating amplified value for the entire group.