First Engineering Ltd. announced today that Sunningdale Tech Ltd. has proposed a 100% acquisition of Anchorage Singapore Holdings Pte Ltd., the holding company of First Engineering, for $80 million. Both based in Singapore, First Engineering and Sunningdale Tech are integrated tooling and highly engineered plastics manufacturers. The companies have combined annual revenue exceeding $500 million and employ 10,000 people in manufacturing and corporate facilities across Asia, Australia, Europe, and North and South America.
|Brian Smith, CEO, First Engineering|
"The combined strength of these two complementary organizations will create a highly diverse and technologically advanced industry [leader] with an unparalleled global footprint," said Brian Smith, who will stay on as First Engineering CEO. "The combination of the two businesses also helps return the focus to Singapore as the global center of specialty engineered manufacturing, with us as the clearly distinguished global leader. We are very optimistic about our future together," said Smith.
Sunningdale Tech CEO Khoo Boo Hor added: "We are very excited about this strategic transaction. It is a major milestone for Sunningdale Tech because First Engineering is highly complementary to our vision to be one of the leading global high-precision plastics companies. This transaction will not only expand our group's blue chip customer base and widen our product mix offering, but also further strengthen our existing footprint and give us immediate access to the Indian market. Last but not least, the combined talent from both businesses will create one of the largest precision plastics companies in Asia."
The combined First Engineering and Sunningdale Tech business is positioned for strong growth as its increases penetration of market segments through specialized tooling, optimised manufacturing, and leveraging of industry-leading technologies.
Founded in 1979, First Engineering has operations in Singapore, Malaysia, China, and India, with commercial operations in Europe and the United States. In 2012, a consortium led by Anchorage Capital Partners acquired First Engineering and invested in new manufacturing capacity in India and a Technology and Tooling Centre in China, and implemented improved operational processes and customer acquisition models.
The deal is expected to close in Q4 2014.