LOS ANGELES, Jan. 07, 2019 (GLOBE NEWSWIRE) -- Platinum Equity announced today that Pagani Holding III Limited ("Offeror"), an indirectly wholly-owned subsidiary of investment funds and entities affiliated with and advised by Platinum Equity, has signed a definitive agreement to acquire PCI Limited (“PCI”), a Singapore-listed electronics manufacturing services provider, for S$1.33 in cash per share. The transaction is subject to shareholder and regulatory approval and is expected to close in 2Q 2019.
PCI provides design, manufacturing, testing, and supply chain services to an expanding global customer base. The business serves diverse end-markets, including the automotive, industrial equipment, commercial, consumer/lifestyle, and medical segments.
“PCI has been delivering manufacturing solutions to blue-chip customers for more than 40 years,” said Platinum Equity Partner Jacob Kotzubei. “The company has a clear understanding of its customers’ technology and supply chain needs, and represents a strong platform for continued growth.”
PCI CEO Teo Eng Lin said the take-private transaction is the right move for the company and its stakeholders.
“We built this business on a commitment to helping our customers improve their time to market at the right price and performance points, with the highest possible quality standards,” said Mr. Teo. “Platinum Equity believes in that mission and will provide the financial and operational resources we need to further expand and improve our business. This is exciting news for our company and our customers.”
Platinum Equity’s Singapore-based investment team has been actively pursuing new investment opportunities in the region. The proposed transaction marks the second privatization from the Singapore Stock Exchange announced by the team in the last 18 months.
PCI will join other Asia-based companies in Platinum Equity’s portfolio, including: Broadway Systems and Technology, a Chinese manufacturer of protective packaging solutions, insulation and component products; Ying Shing Enterprises, a fully integrated manufacturing solutions provider for plastic injection molded and metal stamping components that was merged with Fischer Tech Limited in November 2017; and Compart Systems, a manufacturer of precision-engineered metal components.
“PCI delivers high-quality end-to-end manufacturing supply chain solutions that create competitive advantages for technology companies around the world,” said Soo Jin Goh, principal at Platinum Equity and head of the firm’s Singapore-based investment team. “We are committed to helping the company grow both organically and through additional add-on acquisitions.”
Scheme of Arrangement and Joint Announcement
The proposed acquisition of PCI by the Offeror will be effected by way of a scheme of arrangement under the Singapore Companies Act (the "Scheme") and in accordance with the Singapore Code on Takeovers and Mergers.
This press release should be read in conjunction with the full text of the joint announcement in relation to the Scheme issued by the Offeror and PCI dated 4 January 2019 (the "Announcement"), which provides further details on the terms, conditions and financial evaluation of the Scheme.
A copy of the Announcement is available on www.sgx.com.
Advisers
DBS Bank Ltd. is acting as sole financial adviser to the Offeror. Duane Morris & Selvam LLP and Latham & Watkins LLP are acting as legal advisers to the Offeror.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $13 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 23 years Platinum Equity has completed more than 250 acquisitions.
Responsibility Statements
The directors of the Offeror (including any who may have delegated detailed supervision of the preparation of this press release) have taken all reasonable care to ensure that the facts stated and all opinions expressed in this press release (excluding information relating to PCI or any opinion expressed by PCI) are fair and accurate and that, where appropriate, no material facts in relation thereto have been omitted from this press release, and the directors of the Offeror jointly and severally accept responsibility accordingly.
Where any information has been extracted or reproduced from published or otherwise publicly available sources or obtained from PCI, the sole responsibility of the directors of the Offeror has been to ensure that, through reasonable enquiries, such information is accurately extracted from such sources or, as the case may be, reflected or reproduced in this press release. The directors of the Offeror do not accept any responsibility for any information relating to or any opinion expressed by PCI.
Forward-looking Statements
All statements other than statements of historical facts included in this press release are or may be forward-looking statements. Forward-looking statements include but are not limited to those using words such as “seek”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “project”, “plan”, “strategy”, “forecast” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “may” and “might”. These statements reflect the Offeror’s current expectations, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information.
Such forward-looking statements are not guarantees of future performance or events and involve known and unknown risks and uncertainties. Accordingly, actual results may differ materially from those described in such forward-looking statements. Shareholders and investors of the Offeror should not place undue reliance on such forward-looking statements, and the Offeror does not undertake any obligation to update publicly or revise any forward-looking statements.