French infrastructure giant Vinci acquires Singapore engineering SME E+HPS for S$50 million

FRENCH infrastructure giant Vinci has acquired engineering facilities solutions provider E+HPS for S$50 million, in its second purchase of a Singapore small and medium-sized enterprise (SME).

The acquisition was made by Vinci subsidiary Vinci Energies Asia-Pacific, which in 2018 took a majority stake in Singapore mechanical and electrical engineering services provider Wah Loon Engineering.

With this deal, E+HPS can take on more large-scale, capital-intensive projects locally and in the region, E+HPS co-founder Jeffrey Koh told The Business Times in an exclusive interview.

More such opportunities will arise as global semiconductor firms build their presence here, he noted, describing E+HPS as a “key service provider” in the semiconductor and pharmaceutical industries.

The company’s services include the installation of mechanical and electrical works, solar panels, clean-room panel systems, and process-control systems in plants.

E+HPS’ semiconductor and pharmaceutical client base is precisely what Vinci Energies intends to tap. Jerome Guiral, Vinci Energies Asia-Pacific’s managing director, noted that the French multinational currently lacks a strong presence in those areas in Singapore.

The acquisition of E+HPS will boost the group’s industry business line, which involves supporting industrial clients to install and improve the efficiency of plants and equipment, added Guiral.

Support for going overseas

Established in 2006, E+HPS posted about S$60 million in revenue for its latest financial year ended March, up from S$41.3 million the year before.

Following the acquisition, E+HPS’ co-founders Koh and Tan Chin Khian – who previously held half the company shares each – have been redesignated to perimeter director and business unit manager, respectively.

They continue to oversee E+HPS’ operations in their previous roles as managing director and executive director, respectively, but now report directly to the management of Vinci Energies Asia-Pacific.

Tan described the deal as a “win”, as they can continue to manage the business while Vinci “renders support whichever way it can, financially or technically”.

One area where E+HPS will gain support is internationalisation. The company has 50 staff in Singapore and no offices overseas, though it had previously participated in projects in India, China and the Philippines.

“Moving forward, we need a strong partner to assist us so that we can go further,” said Koh.

With the support of Vinci Energies, E+HPS intends to expand into Malaysia and Indonesia. The French multinational already operates in both markets through Wah Loon’s Malaysian subsidiary, as well as Indonesian subsidiaries Indokomas Buana Perkasa and Jetec Indonesia.

Said Koh: “Investments into such manufacturing plants can go up to millions of dollars. We’ll need more technical support, headcount and financing to take on projects of such scale.”

Said Guiral: “E+HPS is profitable and has a good market. But we invested in the company also because of its culture and the values it shares with Vinci Energies.”

Vinci Energies creates customised solutions and services for energy, transport and communications infrastructure, as well as for buildings and factories, and information technology systems.

In 2023, the Asia-Pacific arm of Vinci Energies clocked 572 million euros (S$830 million) in revenue. This formed about 3 per cent of Vinci Energies’ total group revenue of 19.3 billion euros.

With the acquisition of E+HPS, Guiral expects Vinci Energies Asia-Pacific’s revenue to grow to 600 million euros in 2024.

The group also identified two possible acquisition targets in New Zealand: an automation solutions provider and an ICT solutions provider.

The acquisition of E+HPS builds on the success of the group’s tie-up with Wah Loon, said Guiral.

“The collaboration between Wah Loon and Vinci Energies in 2018 had a lot of synergies, and we figured that we can continue the growth of the group in Singapore and Malaysia,” he said.

In 2018, Vinci Energies took an 80 per cent stake in Wah Loon for an undisclosed sum, estimated by brokers at around S$250 million.

At the time, Wah Loon’s annual revenue was close to S$200 million. It has since grown to more than S$300 million.