Archipelago backs Indonesian chemicals producer
Archipelago Capital Partners, a Southeast Asia-focused private equity firm established by three partners who previously worked together at McKinsey & Company, has made its first investment in Indonesia with the acquisition of Timuraya Tunggal.
The size of the deal was not disclosed, but AVCJ understands it is towards the lower end of Archipelago’s $15-50 million transaction range. The firm is currently seeking $150 million for its debut fund.
Founded in 1979, Timuraya is a leading chemicals manufacturer, specializing in sulfuric acid and various downstream products. It claims to be one of the world’s largest manufacturer of sulfamic acid, having pioneered production in Indonesia. The company operates two integrated plants – designed to achieve zero waste output – in the West Java area.
“Timuraya is at an inflection point to transform from a well-run profitable family business into a regional chemical champion adopting the latest technologies and best corporate practices, including in the area of sustainability and green practices. We are excited and confident that with this investment, we will be able to bring Timuraya to the next level, to serve our customers even better,” said Eng Khim Lim, the company’s president-director, in a statement.
Lim is also a managing director and one of the founders of Archipelago, who previously worked for Khazanah Nasional. The other two co-founders and McKinsey alumni are Jovasky Pang, who used to make financial services investments for Temasek Holdings, and Kiat Chan, formerly of Singapore Post.
Targeting small to mid-cap buyouts, they want to build a concentrated portfolio and take a highly operational approach, running investee companies directly if necessary. The firm’s key geographies are Indonesia, Malaysia, Thailand, and the Philippines.
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