Karex buys remaining 30% US condom firm GP Corp 


KUALA LUMPUR: Karex Bhd will acquire the remaining 30% stake in US-based Global Protection Corp (GP Corp) in a deal worth RM42.26mil that will give its American partner a 7.86% stake in the enlarged company.

Global Protection in the owner of ONE brand condoms.

"Upon completion of the acquisition, Karex Group will be able to fully benefit from the manufacturing and distribution of GP products, which will in turn further increase Karex Group’s market share at the international forefront in the sexual wellness business by leveraging on GP products," the company said in a filing with Bursa Malaysia today.

Under the deal, Karex will acquire the 30% stake in GP Corp from its founder and president Davin Wedel for RM42.26mil via the issuance of 82.93 million new Karex shares.

GP is principally involved in the distribution, packaging and marketing of condoms, personal lubricants and related products to retail and healthcare markets in North America.

"For over 20 years, GP has been providing and will continue to provide Karex Group with invaluable experience of being a brand owner and innovator in the competitive North American region," it said.

"GP also leverages on Karex Group’s economies of scale with its status as the world’s largest condom manufacturer to be able to competitively price its products and gain access to the most innovative products within the sexual health space," it added.

Karex, in October 2014, acquired a 55% stake in GP Corp for US$6.6mil cash, or RM21.12mil at that time.

Under the deal, the company was also given two call options to increase its stake in GP Corp.

On 16 March 2018, Karex completed the acquisition of the first option shares of 15% US$1.95mil cash, or RM7.57mil to raise its stake in GP Corp to 70%.

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Karex , condom , Global Protection Corp

   

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