Vizione ventures into healthcare with SSN deal

by TMR / pic by TMR FILE

VIZIONE Holdings Bhd is set to diversify into the healthcare sector through a deal that could see it become the controlling shareholder in a manufacturer of rubber gloves and condoms.

The construction concern’s wholly owned subsidiary, VIP Index Sdn Bhd, has inked heads of agreement (HoA) with Ang Teck Leong, Lim Kiat Yee and Ravendran Uthrapathy to buy a 51% stake in SSN Medical Products Sdn Bhd for RM5 million in cash.

SSN manufactures latex and nitrile medical gloves, latex condoms and specialty gloves such as elbow-length medical gloves at its facility in Seri Kembangan, Selangor, Vizione stated in a release yesterday.

About 80% of SSN’s products are exported to markets in the US, Germany, China and other European countries.

The SSN factory in Seri Kembangan has nine manufacturing lines with a total capacity of more than 500 million gloves per annum and is exploring opportunities in other high value-added medical disposables.

“We are excited about the potentials arising from the proposed acquisition of SSN. I understand our shareholders may think we are jumping onto the gloves bandwagon. However, after conducting studies on the expected demand growth for gloves and understanding the operations of SSN,

we are convinced this is a very viable business with good returns,” Vizione MD Datuk Ng Aun Hooi (picture) said.

He added that SSN is an attractive investment as it has been in operations since 1997 and has existing customers in Europe and the US, as well as an established supply chain network.

SSN has also successfully carved a niche market producing specialty gloves such as elbow-length latex medical gloves, gloves for gynaecology and gloves for chemotherapy use, he added.

In addition to serving as an original equipment manufacturer, SSN also has its own brand called “Hanser”.

Ng added that Vizione can help improve and enhance SSN’s plant’s operational efficiency and add additional production lines to boost its capacity by 100% to one billion gloves a year from 500 million currently.

“With this, Vizione will be able to unlock the full potential of SSN and maximise our investment returns,” he stated in a release.

The Covid-19 pandemic has sparked a spike in demand for gloves and other PPE. The Malaysian Rubber Glove Manufacturers Association expects global demand for rubber gloves to hit 345 billion pieces this year compared to 298 billion in 2019.

The global market for medical gloves is projected to reach US$70 billion (RM289.8 billion) by 2027 with a trailing compound annual growth rate of 12.4%, according to ReportLinker1.

“We will ride on the growth of this sector and continue to deliver exceptional value to our shareholders,” Ng added.

The proposed acquisition shall be conditional on the completion of financial and legal due diligence on SSN.

If all goes well, Vizione and the vendors shall enter into a definitive agreement within 90 days following the signing of the HoA.