Business

Eastern Merchants acquires rubber manufacturer Microcells

Eastern Merchants PLC, an exporter of rubber, coconuts and spices, announced that it has acquired a 100% stake in rubber manufacturer Microcells (Pvt) Ltd for Rs. 575 million.

In a Colombo Stock Exchange filing Eastern Merchants said that 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 for multiple sectors, ranging from agricultural to industrial. A BOI approved company, Microcells employs a staff of over 150 in its factory and office complex in Piliyandala.

Eastern Merchants PLC is an exporter that exports rubber products, desiccated coconuts, cinnamon and cloves to Vietnam, Cambodia, Malaysia, Thailand, Indonesia and India.

The company said the acquisition is timely and in sync 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.