Econframe acquires Ivory Pearl for RM56m to expand into UK and Australia

ECONFRAME Bhd is acquiring Ipoh-based wooden door manufacturer Ivory Pearl Sdn Bhd (IPSB) for RM56 million to expand its presence in the UK and Australian markets.

The acquisition will be funded through RM46.67 million in cash, sourced from internally generated funds and bank borrowings, while the remaining RM9.33 million will be settled via the issuance of 16.5 million consideration shares at 56.53 sen per share.

This will make IPSB’s major shareholders, Yeong Chew Tet and Lee Kok Choy, substantial shareholders in Econframe.

IPSB specialises in manufacturing and selling internal, external, and fire-rated wooden doors, with its key markets in the UK and Australia.

Econframe, which currently serves only the Malaysian market, aims to leverage IPSB’s established overseas customer base to boost its international footprint.

The acquisition, expected to be completed by the second quarter of 2025, will increase Econframe’s production capacity by approximately 162,000 doors annually.

The company anticipates that the expanded capacity, cross-selling opportunities, and resource consolidation will enhance its financial performance.

IPSB’s shareholders have guaranteed a minimum profit after tax (PAT) of RM5 million for the financial year ending August 31, 2025, and a cumulative PAT of RM10 million by August 31, 2026. — TMR