Headland completes deals in Singapore, South Korea
Headland Capital Partners has taken a minority stake in Miclyn Express Offshore (MEO), which supplies vessels to the oil and gas industry, and backed existing portfolio company Unison eTech (UET) in the acquisition of another South Korean construction equipment manufacturer.
The private equity firm, which spun out from HSBC Private Equity late last year, has paid $141 million for a 26.45% stake in MEO. It made the investment through Headland Private Equity Fund 6, which has $1.388 billion in capital and targets deals of $40-150 million, principally in the consumer, industrial and manufacturing, and electronics and technology sectors.
Singapore-headquartered MEO has a fleet of more than 120 vessels, including offshore support vessels, crew boats, tugs, barges and coastal survey vessels. It provides services to oil and gas companies operating in Southeast Asia, Australia and the Middle East as well as to the marine civil construction industry. Headland expects demand for vessel chartering in these regions to remain strong due to rising levels of exploration and production expenditure.
Headland acquired UET in May, again through its sixth fund. The company produces construction materials and infrastructure used in power, petrochemical and biogas plants. HJR, which is now 100%-owned by UET, is South Korea's leading manufacturer of expansion joints, crossovers and intercoolers.
"We are delighted with the progress of our investment in UET and this follow-on acquisition. We believe that the combined UET-HKR business will be able to expand significantly in line with the improving prospects of its key customers, which include Korean engineering, procurement and construction companies and Japanese and US power plant manufacturers," Taigon Kim, Headland's senior partner, said in a statement.
HSBC holds a 19.9% stake in Headland as well as a significant LP interest in at least one of the funds now being advised by the spin out. Apart from Fund 6, current active vehicles include Headland Private Equity Fund 3, which reached closed at $700 million in December 2004.
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