KUALA LUMPUR (Jan 26): Karex Bhd's wholly owned subsidiary Karex Holdings Sdn Bhd has entered into an asset purchase agreement with TheyFit, LLC, Dr Michael Cecil and Joseph Nelson for the proposed acquisition of TheyFit's right, title plus interest to the assets of TheyFit other than the excluded assets and liabilities for US$1.3 million (RM5.63 million).

In the filing to Bursa Malaysia today, Karex said the rationale of the proposed acquisition is part of its own brand manufacturing expansion plan.

"The proposed acquisition shall enable Karex group to complement and expand its existing OBM (own brand manufacturing) products family consisting of 'Carex', 'INNO', ONE® and the recently acquired 'ESP'. The purchased assets allow Karex group to develop future brands or rebranding, as the case may be, in various custom fit sizes of condoms.

"Together with the Food and Drug Administration approvals, Karex group will be able to market new custom fit condoms to US and global markets and further expand its market share," it said.

Karex said that TheyFit owns the patents, trade names and trademarks for condoms manufactured, marketed and sold under the TheyFit® brand in key markets such as UK and Europe.

Karex shares dropped 14 sen or 3.31% to close at RM4.09, for a market capitalisation of RM2.83billion.

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