Chin Hin to buy two firms for RM18.3m

PETALING JAYA: Building material company Chin Hin Group Bhd is forking out a total RM18.3 million for the acquisition of two firms, which are involved in wood and consumer products.

Midah Industries Sdn Bhd manufactures wood products while Epic Diversity Sdn Bhd is engaged in consumer products such as locks, lock sets, alarm systems and other related business. The acquisition price tags are RM14.5 million and RM3.8 million respectively.

In a filing with the stock exchange, Chin Hin said its whollyowned subsidiary PP Chin Hin Sdn Bhd had entered into conditional shares sale agreements with the vendors for the acquisitions.

The acquisition sum will be satisfied entirely in cash, financed through internally-generated funds.

Chin Hin said the acquisition of Midah is in line with its focus on high margin products that complement its existing businesses.

Midah is one of the top five market players in the local fire door industry with an installed capacity of 5,000 units per month supported by a strong customer base.

Meanwhile, Chin Hin noted that Epic has experience in implementing and scheduling of ironmongery for commercial projects, residential and factories.

“The proposed acquisition is part of Chin Hin’s organic growth strategy to enhance our product portfolio,” it said, adding that about 90% of Epic’s lock sets are supplied to Midah, which complement Midah’s door business.