Platinum buys Chinese manufacturing business

These assets - Foam Plastic Solutions (FPS) and Flow Control Devices (FCD) - make protective packaging, insulation and components for the electronics, automotive and medical sectors, as well as precision components for semiconductor assemblies and other industries. The deal is scheduled to be completed by March of next year.

The proposed purchase of FPS and FCD marks Platinum's second acquisition in Asia. In April of last year, the PE firm bought Ying Shing Entertprises, a Chinese company that specializes in precision tool making, injection molding and contract manufacturing.

Singapore-listed Broadway said in a filing that the company was selling the units in part because they "require significant capital injection for growth and development, which the group faces challenges raising in the current economic environment."

The group generated S$651 million in revenue last year, down from S$695 million in 2014. It made a net loss of S$87 million in 2015 compared to a net profit of $173,000 in 2014. The units to be sold reported a net profit of S$11.1 million in the first six months of 2016.

Platinum has more than $6 billion in assets under management and is currently investing its third buyout fund, which closed in September 2013 at $3.75 billion. The firm raised $2.75 billion for its previous vehicle in 2008.

"We have 20 years of experience providing divestiture solutions to corporate sellers and establishing thriving standalone businesses," said Jacod Kotzubei, a partner at Platinum, in a statement. "We also have substantial financial and operational resources in Asia and a strong and growing track record of creating value in the region."

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• Topics
• Greater China
• Southeast Asia
• Buyouts
• China
• Singapore
• USA
• manufacturing