Unicharm to acquire disposable baby diaper maker in Myanmar
March 25, 2013 - Japan
The board of directors of Unicharm Corporation has approved on March 21, 2013, that the company continues to further discuss and negotiate with its counterparts for finalizing the stock purchase agreement immediately possible on the acquisition of 100% of outstanding shares in CFA International Paper Products Pte. Ltd. (CFAIPP) in Singapore who holds 88% of shares in Myanmar Care Products Limited (MYCARE) and 10% of outstanding shares in MYCARE through Uni-Charm (Thailand) Co., Ltd., its affiliate in Thailand. MYCARE is a leading supplier of feminine napkin and disposable baby diaper in Myanmar. The negotiation with the counterparts has almost been reached, in general, to the final agreement.
Background and objective of acquisition
Having a total population of 62 million almost equivalent to Thailand, Myanmar is one of the top ranking countries in ASEAN region after Indonesia, Philippines and Vietnam in size of population and it is expected to highly expand in GDP and market consumption in the future taking an advantage of its recent democratization as well as lifting of economic sanctions by Europe and USA.
Founded in 1995, MYCARE is one of the leading suppliers of hygiene products such as feminine napkin and disposable baby diaper covering broad areas in Myanmar under very well known brands that have been built up during the past 18 years of its history. As a matter of fact, “Eva”, its primary brand for feminine napkin, is securing number one share in Myanmar market and “MyBaby” for baby diaper is in the second position after “MamyPoko” of Unicharm.
Both “Eva” and “MyBaby” brands are highly recognized across-the-nation. Our management decision to acquire MYCARE has been made on the ground that new market is created and overwhelming share is further secured by accelerating the speed of brand penetration through the expansion of product availability and mutual utilization of manufacturing technology and marketing know-how as a result of MYCARE to become a member of Unicharm group.
On top of this, Unicharm and MYCARE will jointly and further realize their high growth in Myanmar market by making full use of (i) excellent reputation of MYCARE as a corporate citizen in the social community in Myanmar built up over the last 18 years, (ii) high awareness of MYCARE’s brand in Myanmar and (iii) business infrastructure of MYCARE in combination with a series of strengths brought in by Unicharm such as product development, manufacturing technology, marketing, etc.
Unicharm group is aiming at “Dominating in Asia” under its “Global 20 Plan” and we have been continuously expanding business size in hygiene product segment such as feminine napkin and disposable baby diaper in ASEAN markets. Hygiene product market in Myanmar still stands at its dawn; however, rapid growth can be expected in line with the increase in population and development of economy. Business size of Unicharm group in Myanmar who first made its entry in 2006 has been expanding with the quick speed of CAGR 117% in the past years and we will further accelerate it with the acquisition of MYCARE.
Background and objective of acquisition
Having a total population of 62 million almost equivalent to Thailand, Myanmar is one of the top ranking countries in ASEAN region after Indonesia, Philippines and Vietnam in size of population and it is expected to highly expand in GDP and market consumption in the future taking an advantage of its recent democratization as well as lifting of economic sanctions by Europe and USA.
Founded in 1995, MYCARE is one of the leading suppliers of hygiene products such as feminine napkin and disposable baby diaper covering broad areas in Myanmar under very well known brands that have been built up during the past 18 years of its history. As a matter of fact, “Eva”, its primary brand for feminine napkin, is securing number one share in Myanmar market and “MyBaby” for baby diaper is in the second position after “MamyPoko” of Unicharm.
Both “Eva” and “MyBaby” brands are highly recognized across-the-nation. Our management decision to acquire MYCARE has been made on the ground that new market is created and overwhelming share is further secured by accelerating the speed of brand penetration through the expansion of product availability and mutual utilization of manufacturing technology and marketing know-how as a result of MYCARE to become a member of Unicharm group.
On top of this, Unicharm and MYCARE will jointly and further realize their high growth in Myanmar market by making full use of (i) excellent reputation of MYCARE as a corporate citizen in the social community in Myanmar built up over the last 18 years, (ii) high awareness of MYCARE’s brand in Myanmar and (iii) business infrastructure of MYCARE in combination with a series of strengths brought in by Unicharm such as product development, manufacturing technology, marketing, etc.
Unicharm group is aiming at “Dominating in Asia” under its “Global 20 Plan” and we have been continuously expanding business size in hygiene product segment such as feminine napkin and disposable baby diaper in ASEAN markets. Hygiene product market in Myanmar still stands at its dawn; however, rapid growth can be expected in line with the increase in population and development of economy. Business size of Unicharm group in Myanmar who first made its entry in 2006 has been expanding with the quick speed of CAGR 117% in the past years and we will further accelerate it with the acquisition of MYCARE.