Northstar completes $240m Singapore take-private

The consumer-focused mid-market firm recently completed its acquisition of Innovalues for $240m.

South-East Asian private equity firm Northstar Group has completed its first investment in the precision manufacturing sector with the acquisition of Singapore-listed Innovalues for S$334.6 million ($240 million; €222 million), according to a company statement.

The acquisition was done via a scheme of arrangement first announced in October in which Northstar-backed Precision Solutions acquired all of Innovalues’ 328,109,000 shares at S$1.01 per share. 

The firm made the investment through Northstar Equity Partners IV, its 2014-vintage fund that closed on $810 million against a $1 billion target. 

Innovalues specialises in manufacturing customised precision machined parts and components, predominantly for the automotive and office automation industries. Headquartered in Singapore, the company has operations in Thailand, Malaysia and China and employs 1,600 people. 

Commenting on the transaction, Northstar CEO Tan Choon Hong, said: “We look forward to working closely with Mr Goh and the Innovalues management team to further expand the industry-leading business they have built. Precision manufacturing is a sector that we like tremendously, and we will be seeking opportunities to actively grow Innovalues’ business both organically and inorganically.” 

Northstar, with over $2 billion of assets, invests in growth opportunities in South-East Asia. The firm’s most recent investments include Indonesian motorcycle hailing app GO-JEK and paint manufacturer Indaco. 

Last month, the firm appointed Bert Kwan, a former head of ASEAN private equity at Standard Chartered Private Equity, as a managing director based in Singapore.

Limited partners in Northstar’s funds include Singapore sovereign wealth fund GIC Private Limited, University of Texas Investment Management Co. (UTIMCO), and the Maryland State Retirement and Pension System, according to PEI data.