Navis Capital Partners has completed the acquisition of MFS (S) Technology Pte Ltd, a provider of rigid and flexible printed circuit boards and precision parts, the company said.
The deal that was originally announced in August, saw Navis acquiring a majority stake in MFS as part of a consortium that includes Singapore-based technology focused private equity fund Novo Tellus Capital Partners and a management buy-in (MBI) team.
Navis and Novo Tellus had bought MFS from United Engineers Ltd in a S$124 million deal. United Engineers had 57% interest in MFS through its indirect subsidiary WBL Corporation Limited and wholly-owned subsidiary UES Holdings Pte Ltd.
In August, Novo Tellus (through Novo Tellus PE fund 1, LP) and Navis (through Navis Asia Fund VII) entered into a legally binding ‘letter of offer’ to acquire all of the assets and liabilities of MFS Technology for S$124 million ($95.2 million), in cash from MFS Technology Ltd. Under the agreement, 95% of the consideration will be paid on completion and the balance 5% of the consideration will be paid 12 months after completion of the deal.
United Engineers, a company listed in Singapore, owned a 57% stake on MFS through its 67.6%-owned indirect subsidiary WBL Corporation and its wholly-owned subsidiary UES Holdings. MFS (S) Technology Pte Ltd is the sole operating subsidiary of MFS Technology Ltd, also a Singapore Stock Exchange -listed company.
The MBI team will be led by incoming chief executive at MFS, Tan Bian Ee, who oversaw a successful turnaround of the business when he was in charge between 2011 and 2013.Tan said the MBI team was determined to further build upon its experience and continue to deliver value to the stakeholders.
“Our new partnership with Navis and Novo Tellus will provide additional financial strength and strategic support that we believe will enable us to achieve our goals.”
MFS (S) Technology Pte Ltd is the sole operating subsidiary of MFS Technology Ltd, a Singapore Stock Exchange -listed company.
MFS Technology Ltd is one of the major players in the global flexible circuits market, with production facilities in Malaysia and China offering flexible printed circuit, printed circuit board and rigid-flex printed circuit solutions.
MFS Technology reported revenues of S$ 176.89 million ($135.8 million), net income of S$ 8.1 million ($6.22 million), net assets of S$ 111.17 million ($85.4 million), total assets of S$ 161.19 million ($123.7 million), EBIT of S$ 4.66 million ($3.58 million), EBITDA of S$ 13.54 million ($10.4 million), earnings from continuing operations of S$ 8.17 million ($6.3 million), nil total debt and net debt of S$ 23.43 million ($18 million) for the year ended June 31, 2014.
Navis, which manages approximately $5 billion in equity capital, has as extensive track record in the Asian private equity scene, with over 60 completed transactions since its establishment in 1998.