Sunningdale to buy FEL; gains access to Indian market

Singapore’s mainboard-listed Sunningdale Tech is acquiring homegrown First Engineering Ltd (FEL) from its parent firm Anchorage Singapore Holdings, in a deal worth US$80 million. The deal includes FEL’s manufacturing facility in Chennai, which will allow Sunningdale to strengthen its footprint in India.

Both First Engineering and Sunningdale Tech are Singapore-based integrated tooling and highly engineered plastics manufacturers. Together, First Engineering and Sunningdale Tech have combined annual revenues of more than US$500 million, with some 10,000 employees located in manufacturing and corporate facilities across Asia, Australia, Europe, South America and North America Sunningdale Tech CEO Khoo Boo Hor 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."

CEO of FEL, Brian Smith, said, “The combined strength of these two uniquely complementary organisations will create a highly diverse and technologically advanced industry leading player with an unparalleled global footprint. The combination of the two businesses also helps return the focus to Singapore as the global centre of specialty engineered manufacturing – with us as the clearly distinguished global leader. We are very optimistic about our future together.”

Founded in 1979, FEL has operations in Singapore, Malaysia, China, and India, with commercial operations in Europe and the US. In 2012, a consortium led by Anchorage Capital Partners acquired FEL, strengthening the company through an all-encompassing strategic and operational turnaround programme. This programme included investments in new manufacturing capacity in India, a specialised Technology and Tooling Centre in China, improvements made across operational processes, the development of a world-class customer acquisition model, and significantly enhanced financial performance and stability.

Since 2005, FEL has been producing precision engineering products at Kancheepuram district of Tamil Nadu, India.

The deal is expected to close in the fourth quarter of this year.

(IMA)

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