BANGKOK — Thai chemical giant Siam Cement Group’s packaging arm settled a deal to acquire its British competitor Go-Pak UK on Wednesday, taking advantage of rising demand for food containers in the coronavirus-induced delivery boom.
SCG Packaging will initially pay 77.5 million pounds ($106 million) to buy the entire 100% stake of Go-Pak. Then, it will make second and third payments based on the British company’s financial performance in 2021 and 2022. Those additional payments will range from 30 million pounds to no more than a total of 56 million pounds, bringing the final acquisition cost to between $146 million and $182 million.
Investors reacted positively to the deal. SCG Packaging shares rose 1.7% to 44.75 baht on Wednesday.
Headquartered in Bristol with production facilities in southern Vietnam, Go-Pak sells disposable coffee cups, food containers and cutlery in the U.K.,…
