H&Q takes control of Taiwan Sumida Electronics

H&Q Asia Pacific has made a second investment in the electronics sector in six months leveraging its experience in the flat screen industry.

H&Q Asia Pacific has acquired an 85.1 percent stake in Taiwan Sumida Electronics, a manufacturer of inverters used in notebook PCs, for ¥1.787 billion ($16 million; €11 million) from its Tokyo-listed parent. Sumida Corporation, an electronics component manufacturer will retain a 14.9 percent stake in its Taiwanese business, according to a statement.

Shigeyuki Yawata, chief executive officer of Sumida, said the company’s decision to sell a controlling position in Taiwan Sumida to H&Q Asia Pacific “reflects our desire to focus our business resources on our core business.”

Taiwan Sumida’s strength in transformer design means the company is “well-positioned to take advantage of the rapidly growing LCD market,” Ta-lin Hsu, Chairman of H&Q Asia Pacific said.

H&Q Asia Pacific has been investing in the TFT-LCD (Thin Film Transistor LCD) industry with successful investments in many of the industry leaders such as Amtran, Taiwan PCB Techvest, Wintek Corporation, and Sintronics Technology.

Shigeaki Koga, Tokyo-based managing director of H&Q, said the acquisition “highlights our core investment strategy in Japan. H&Q Asia Pacific has been successful at identifying key opportunities to migrate talented management teams and technology from Japan to Greater China to take advantage of the lower costs of manufacturing and engineering, and implement cross-border sales strategies to drive growth.”

H&Q was part of a consortium comprising FAT Capital and Merrill Lynch that took private Taiwan-listed Primax Electronics, a designer and supplier of scanners, computer peripherals and Bluetooth accessories in a transaction valued at $265 million last September.