Halcyon Agri to acquire 9 more Indonesian Rubber Factories
Halcyon Agri Corporation Limited announced that it has signed agreements to acquire Anson Company (Private) Limited. Anson owns and operates 9 crumb rubber factories in South Sumatra, North Sumatra, Jambi and West Kalimantan. 6 of these factories are near existing Halcyon Agri facilities. The factories produce standard Indonesian Rubber for leading global tyre producers. The purchase consideration is $450 million. The purchase adds 408,000 tonnes of export capacity to Halcyon Agri bringing its total capacity to 748,000 tonnes. This ranks it as one of the top 5 technical specified rubber producers worldwide. The acquisition will be 40.5% co-invested by Mr Robert Meyer, Halcyon Agri’s CEO.
GET TO THE POINT : Hopefully this is the right time of the cycle for Halcyon Agri to make their acquisition. If it is, this should pay off handsomely for them. Reaping economies of scale from increasing capacity through affordable means is good strategy.
(Picture from Halcyon Agri Corporation Limited)
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