Platinum to buy Singapore electronics industry supplier

Platinum is offering S$3.02 per Fischer share, which values the company at about S$168 million ($124 million). The stock jumped 11% after announcement of the deal and was trading at S$3.00 as of mid-morning July 28.

The plan is to merge Fisher with Chinese manufacturing company Ying Shing Enterprises, which Platinum acquired in 2015 for an undisclosed sum. The transaction remains subject to various approvals and is expected to close within the year.

"When we acquired Ying Shing we pledged to invest in the company's long-term growth and the acquisition of Fischer Tech is an example of that commitment," Soo Jin Goh, head of Platinum’s Singapore-based investment team, said in a statement. "We expect to continue looking for new opportunities to expand the combined business."

Established in 1994, Fischer specializes in precision-engineered plastic components for use in emerging electronic products as well as the design and manufacturing of plastic injection molds. It operates in Singapore, China, Malaysia and Thailand.

Revenue for the 2017 financial year declined 5.2% to about S$178 million while profit improved marginally to around S$13 million. Profit stability was attributed in part to cost control efforts including improved efficiency and better utilization of production capacity.

Fischer is expected to diversify Ying Shing's customer base by providing new technology and adding scale and reach to the company’s manufacturing footprint. Ying Shing, which is based in Hong Kong, maintains production facilities in Zhuhai and Suzhou that focus on precision-engineered plastic injection molded and metal stamping components.

Earlier this year, Platinum closed its fourth buyout fund at $6.5 million, with a global mandate focused largely on industrial sectors such as manufacturing, distribution, transportation and logistics, equipment rental and metals services. Recent Asian activity in this space also includes the acquisition of two Chinese technology components manufacturing units from Singapore’s Broadway Industrial Group for S$150 million.

Platinum raised its first private equity fund in 2004 with $700 million in commitments. Fund II raised $2.7 billion in 2007, while Fund III closed at $3.7 billion in 2012.

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• Topics
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