Singapore-based Jebsen & Jessen Packaging has acquired 60% of Indonesian beverage packaging manufacturer, PT Indo Tirta Abadi (ITA).
A sale and purchase agreement was signed on January 31, 2020 between Jebsen & Jessen and the current shareholders of ITA. The transaction is expected to close in early March subject to completion of conditions precedent.
ITA supplies top global and local beverage manufacturers such as Danone (Aqua), Coca-Cola, Sosro, Nestle and Yeo's. Employing 500 people, ITA's turnover in 2019 was S$42 million. Its product portfolio consists of PET bottles, PET preforms and HDPE closures. The company runs two ISO9001 and ISO22000 (Food Safety Management System) certified production plants using state-of-the-art moulding machines: a main facility in Tangerang and a smaller one in Surabaya.
"With the investment into ITA, our Packaging Regional Business Unit (RBU) will grow its business by 50%. I am excited by this strategic growth move and am delighted that the partnership with the Ali family helps us expand our platform beyond Singapore, Malaysia and Vietnam to now also include ASEAN's largest economy, Indonesia,” said Chui Tau Siong who will, in addition to his current responsibilities as Jebsen & Jessen packaging regional managing director, be taking on the role of president director in ITA once the transaction has been completed.
"This partnership is the happy outcome of a long and careful investment opportunity search driven by our Grow Indonesia strategy. We are thrilled to have the chance to partner with the leading beverage packaging player in a steadily growing industry and to see our strong and trusted Packaging RBU enter the Indonesian market where all other Jebsen & Jessen RBUs are already present," said J. Heinrich Jessen, chairman of Jebsen & Jessen.
Jebsen & Jessen Packaging operates in eight of the ten ASEAN countries and China through a network spanning 30 locations, including nine manufacturing facilities.