Malaysia’s Ekuiti Nasional Bhd (Ekuinas) has acquired a controlling stake in electronic turnkey and components manufacturer Flexi Versa Group in a deal that ascribes the latter an enterprise value of about $84.8 million (MYR 330 million).
The state-owned private equity fund did not disclose the quantum of the stake in its announcement Monday. It noted that the acquisition broadens its portfolio via its foray into the electronic manufacturing services industry, also known as electrical and electronics (E&E) industry, which is considered a key sector for Malaysian exports.
This is Ekuinas’ second investment in the manufacturing sector, following the acquisition of the homegrown lighting design and consultancy firm Davex (Malaysia) in December last year.
Flexi Versa, which started its operations in 1994, runs seven factories in Malaysia and two overseas. It is a tier-1 and 2 contract manufacturer for global consumer electronic brands such as Sony, Panasonic, Onkyo, Sony, Dyson and JVC Kenwood.
The company seeks to strengthen its market leadership in its core acoustic consumer products and expand its die-cutting portfolio from electromechanical components and injection moulding to other consumer appliance business segments.
The latest transaction is part of Ekuinas’ investment strategy to identify strong and high-potential Malaysian companies with a desire to grow and expand regionally, said Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir.
In fact, Malaysia is one of the world’s largest exporters of E&E products and continues to be a key driver for Malaysia’s industrial development, contributing significantly to the country’s overall gross domestic product (GDP) growth, export earnings, investment and most importantly, sustainable employment opportunities.
“Our partnership with Ekuinas represents a meeting of a common objective between FVG and Ekuinas which is to grow our manufacturing footprint regionally. They will be instrumental in helping us institutionalise our entities, expanding our portfolio of established clientele and positioning ourselves as a well-established and versatile turnkey and components manufacturer,” said Chng Boon Huei, Group CEO of Flexi Versa Group.