Report: CVC Asia, Standard Chartered eye huge Amtek exit

The two private equity firms are reportedly looking to sell the Singaporean metal stamping company for about S$1bn just over a year after acquiring it for S$552m. KKR, CVCI and Affinity Equity Partners are potential buyers, initial reports suggest.

CVC Asia, an Asia-focused buyout firm, and Standard Chartered Private Equity are reportedly looking for buyers for Amtek Engineering, a Singapore precision metal stamping company they acquired only last year in May.

The two firms acquired Amtek last year for S$552 million ($390 million; €265 million) and are looking to sell the business for about S$1 billion. Private equity firms Affinity Equity Partners, Kohlberg Kravis Roberts and Citi Venture Capital International are believed to be among the potential buyers, according to unnamed sources, Bloomberg reported.

“The asking price is pretty rich,” a source told PEO. However, an acquisition of Amtek could help KKR and Affinity Equity Partners create synergies for their existing portfolio companies that lie in the same domain, the source added.

KKR has, in recent times, acquired two component makers in Singapore. In June this year, it bought Unisteel, a Singapore-listed manufacturer of computer disk-drive parts, for $576 million. It also acquired MMI Holdings, another disk drive parts manufacturer, for S$1 billion in July 2007.

Affinity Equity Partners, on the other hand, bought Singapore-listed chip tester United Testing and Assembly Centre, together with TPG Capital for S$2.2 billion in July last year.

Interested parties are to express their interest this week, the report added. Macquarie is believed to be handling the sale process, according to the source.

Established in 1980, Amtek is primarily engaged in the manufacturing of precision metal stampings, sheet metal prototypes and mechanical assemblies. Its metal parts are used for a variety of products such as audio-visual equipment, home appliances, electrical switches, computers and automobile parts.