Sunningdale to acquire Anchorage Singapore Holdings

MAINBOARD-listed Sunningdale Tech Ltd has unveiled plans to fully acquire privately held Anchorage Singapore Holdings (ASH) for an enterprise value of US$80 million.

The buyout will create one of the largest precision plastics engineering companies with combined revenue of S$636 million, and manufacturing operations and sales offices spanning nine countries.

ASH is the ultimate holding company of First Engineering Limited (FEL), a manufacturer of precision plastic moulds and engineering components for the automotive, consumer information technology and healthcare (medical device) business segments.

Based in Singapore, FEL serves a blue-chip customer base from its manufacturing and sales locations across five countries, including China, Malaysia and India.

In the preceding 12-month period ended July 2014, FEL generated revenue and earnings before interest, tax, depreciation and amortisation (Ebitda) of US$134 million and US$17.1 million, respectively.

Khoo Boo Hor, chief executive officer of Sunningdale Tech, said: "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."

Net profit of ASH and its subsidiary, as well as FEL, for the financial year ended March is about US$3.4 million.

The book value as well as the net tangible asset value of the sale shares in the proposed acquisition is about US$56.7 million.

Brian Smith, the chief executive officer of FEL, said the combined strength of the two organisations will create a highly diverse and technologically advanced industry leading player "with an unparalleled global footprint".

The proposed acquisition will be funded by Sunningdale Tech through a combination of existing cash and new borrowings.

The deal is expected to close in the fourth quarter of FY2014, with requisite approval required from Sunningdale Tech's shareholders.

Credit Suisse (Singapore) Limited is the sole financial adviser to Sunningdale Tech, while Rippledot Capital Advisers Pte Ltd is the sole financial adviser to the vendors of the ASH shares.