Eastern Merchants PLC acquired 100% shareholding of Microcells (Pvt) Ltd. (hereafter referred to as “Microcells”), for a total purchase consideration of LKR 575 Million. The acquisition was funded by a mix of equity and short term debt.
Founded in 1978, Microcells manufactures and exports technical rubber matting and sheeting products to a global client base. The products of Microcells has applications in multiple sectors, ranging from the agricultural to industrial sectors. A BOI approved company, Microcells employs a staff of over 150 in its factory and office complex situated in Piliyandala.
For Eastern Merchants PLC, the acquisition is timely and in line with its strategic plans to become a fully integrated rubber player. Given its deep experience with natural rubber, the well-placed sourcing networks and strong supply chain, Eastern Merchants PLC is certain of its ability to realize the synergistic value of this acquisition.
The Board of Directors of the Company believe that through this acquisition the Company will be able to reach new heights and fulfill its fullest potential while continuing to create shareholder value.