Singapore-listed engineering company Sunningdale Tech Ltd today announced a USD 80 million proposal to acquire First Engineering Ltd (FEL) including its manufacturing facility in Chennai, with an aim to strengthen its footprint in India.
Sunningdale Tech said it would acquire all the issued and paid-up shares of Anchorage Singapore Holdings Pte Ltd, FEL's holding company.
FEL produces precision engineering products through First Engineering Plastics India Pvt Ltd since 2005 at Kancheepuram district of Tamil Nadu.
"This transaction will not only expand our group's blue chip customer base and widen our product mix offering, but further strengthen our existing footprint and give us immediate access to the Indian market," said Khoo Boo Hor, CEO, Sunningdale Tech, while announcing the proposed acquisition.
FEL's manufacturing facility in Chennai would provide an immediate access to the Indian market when the acquisition completed in the fourth quarter of this year, a Sunningdale spokesperson said.
"Currently, we do not have presence in India but we sell tools made in Sunningdale plants globally to Indian customers," the spokesperson told PTI.
Both Sunningdale Tech and FEL are Singapore-based integrated tooling and highly engineered plastics manufacturers.
They would have a combined annual revenue of more than USD 500 million, with around 10,000 employees located in manufacturing and corporate facilities across Asia, Australia, Europe, South America and North America.
"The combined strength of these two uniquely complementary organisations will create a highly diverse and technologically advanced industry leading player with an unparallelled global footprint," said Mr Brian Smith, who will remain FEL CEO.
"The combination of the two businesses also helps return the focus to Singapore as the global centre of speciality engineered manufacturing – with us as the clearly distinguished global leader," he said.
Founded in 1979, FEL has operations in Singapore, Malaysia, China, and India, with commercial operations in Europe and the United States.