Platinum Equity operates as a private equity investment firm that was founded in 1995 by Tom Gores. The firm has $13 billion in assets under management (AUM) and has a portfolio of around 40 companies around the world. The private equity investment firm specializes in “mergers, acquisitions, and operations,” and focuses on manufacturing, distribution, transportation, logistics, rental equipment, metals, services, media, entertainment, technology, telecommunications, and more. Platinum Equity has completed over 250 acquisitions in its short history.
The investment firm made news after the company announced that it has entered into an agreement to acquire PCI Limited, a Singapore-based electronics manufacturing company. Under the agreement, Platinum Equity will pay S$1.33 per share in cash. Overall, the acquisition is still subject to approval from shareholders and regulators, which could close during the second quarter of 2019.
Platinum Equity Press Release:
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.
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.