KUALA LUMPUR (May 28): Life Water Bhd (KL:LWSABAH) announced that it is acquiring Sabah-based sauces and condiments manufacturer Twinine Sdn Bhd (TSB) for RM10.5 million.

The vendors Wong Yoke Sim and Wong Khai Keong hold 90% and 10% effective stakes, respectively, in TSB, according to the company’s bourse filing.

Life Water said the acquisition will be fully funded through internal cash. It also noted that the adjusted net asset value as of March 31, 2025, stood at RM8.46 million, based on one factory and one warehouse owned by TSB.

The implied price-to-earnings multiple for the purchase is 10.9 times, calculated based on TSB’s net profit of RM963,000 on revenue of RM8.50 million for the financial year ended Dec 31, 2024.

The group stated that the proposed acquisition aims to expand the company’s product portfolio into the sauces and condiments segment. Additionally, it will allow the company to synergise its existing distribution network while leveraging TSB's manufacturing capabilities.

Furthermore, the acquisition supports the company’s future growth plans, including the establishment of an additional factory in Kota Kinabalu Industrial Park.

Life Water expects the exercise to be completed within three months.

Its shares closed 0.5 sen or 0.6% lower at 82 sen on Wednesday, valuing the company at a market capitalisation of RM388 million. Since its Main Market debut on Nov 13 last year, the stock has gained 26.2% from its listing price of 65 sen.