Baring Asia to buy Interplex from CVC, Standard Chartered

Baring Asia is offering S$0.82 per share for all outstanding shares, which represents a premium of 15.5% to the previous close. The deal values the company at approximately S$450 million ($320 million).

Headquartered in Singapore but with over 12,000 employees operating in more than 40 manufacturing plants in 13 countries, Interplex works with the likes of the automotive and electronics industries. It manufactures components that involve complex engineering.

CVC and Standard Chartered bought Amtek Engineering in 2007, de-listing the business in Singapore following a buyout worth S$552 million. They took a 90% stake in the company. Amtek was re-listed in 2010, with a portion of the S$299 million proceeds used to repay a vendor note. The two PE investors appear to have further reduced their holding through public market sales.

Last year, Amtek announced the acquisition of US-based Interplex Industries - a specialist in miniature precision engineering solutions - for an enterprise valuation of $165 million, plus earn-outs and other expenses that could take the total to $210 million. The combined business was renamed Interplex.

For the year ended May 2014, the Interplex entity alone generated pro forma revenue of $368.1 million and EBITDA of $38.6 million. Amtek's revenue has been largely flat since 2010, with a small increase to $633.1 million in 2014 over $626 million the previous year. Net profit has fallen every year since 2011, coming in at $17.5 million in 2014 compared to $26.9 million the previous year.

“We are delighted that Baring’s proposal has been accepted by CVC and SCPEL, and are pleased to extend the same terms to minority shareholders. With the offer price exceeding the highest closing price in the last four years, we believe that our offer would provide an attractive opportunity for all shareholders to realise their entire investment in cash," Kenneth Cheong, managing director at Baring Asia, said in a at $255 million.

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• Topics
• Industrials
• Southeast Asia
• Exits
• Buyouts
• Southeast Asia
• Singapore
• CVC Capital Partners
• Standard Chartered Private Equity
• Baring Private Equity Asia
• buyout
• Exit
• manufacturing