Zurich, Switzerland, March 5, 2019 - DKSH has signed an agreement to acquire the highly profitable and growing distributor SPC in Thailand. DKSH further consolidates the market through this acquisition and Business Unit Technology becomes the largest player for scientific instrumentation in Thailand.
The Business Line Scientific Instrumentation offers laboratory equipment and sector-specific services in industries such as pharma, cosmetic as well as oil and gas. This growing market segment is attractive for DKSH as local manufacturers are increasingly facing higher quality requirements driven by the growing inner Asian trade. DKSH helps these clients with tailored analysis instruments on-site or services in DKSH's own labs.
SPC was established in 1976 in Thailand and focuses on sales, marketing, application engineering and after-sales services for scientific instrumentation. The company works with more than 140 international clients and has a large customer portfolio in both the public and private sector. In addition to the distribution of products such as general lab equipment and analytical instruments, SPC provides consumables and calibration services for scientific research and biotechnology in industries like petrochemical, pharmaceutical, chemical, food and beverage and others. SPC generates sales of around CHF 50 million¹ and is highly profitable. The acquisition will be immediately earnings accretive for DKSH. SPC's 430 specialists and management team will join DKSH.
Hanno Elbraechter, Head of Business Unit Technology at DKSH, said: "We are proud to acquire the leading player in scientific instrumentation. Their business lines are complementary to DKSH's existing activities and perfectly fit into our business model for Technology in Thailand. Our clients and customers will benefit greatly from a bigger portfolio, better market coverage and more value-added services. DKSH will become the market leader in analytical instrumentation in Thailand and accelerate sustainable profitable growth."
Mr. Aran, CEO of SPC, commented: "For more than 40 years, SPC has been distributing products of many international clients in Thailand. Especially due to DKSH's excellent reputation, we are very pleased to become part of DKSH and jointly offer an even broader range of services that drive our clients' growth."
Closing of the transaction is expected in the next months and is subject to certain conditions.
¹ Exchange rate Thai baht / Swiss franc: 31.80