LOS ANGELES, May 10 (Korea Bizwire) — Compart Systems, a portfolio company of Platinum Equity, announced today it has signed a definitive agreement to acquire Alpha Precision Turning & Engineering. Financial terms were not disclosed. The transaction is subject to regulatory approval and other customary closing conditions, and is expected to during Q2 2019.
Compart is a supplier of high-precision, machined metal components including valves, fittings, sensors, and related components, for semiconductor, medical equipment and other industries. Founded in 1985, Alpha is a precision machining company with three manufacturing plants in Kulim, Malaysia.
Jacob Kotzubei, the partner in Platinum Equity’s Los Angeles headquarters who oversees the firm’s Singapore-based team, said Compart and Alpha are highly complementary businesses.
“Alpha will help diversify Compart’s revenue with increased exposure to new end markets, add scale, and expand the company’s footprint into Malaysia,” said Mr. Kotzubei. “Both companies share a commitment to the highest possible quality standards and will each benefit from working together.”
Alpha Founder Lim Tham Cheng, who will remain a minority investor in the business, said the prospective combination with Compart is the right move for the company.
“Joining forces with Compart will be good for our customers and support the long-term growth of our business,” said Mr. Lim. “Compart will be a strong and committed partner and will help create new opportunities, particularly in aerospace and other end-markets. Our customers will benefit from our expanded capabilities and access to additional technology solutions.”
Soo Jin Goh, Principal at Platinum Equity and head of the firm’s Singapore-based investment team, said the add-on acquisition will open up new opportunities for Compart and its customers.
“Compart will be better positioned to meet the needs of diverse, multi-national corporations that need high-quality manufacturing partners in Asia,” said Mr. Goh. “We will continue looking for new opportunities to expand the company’s product offering and geographic reach, both organically and through additional acquisitions.”
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.
Dan Whelan, Platinum Equity
Source: Platinum Equity via GLOBE NEWSWIRE