Platinum Equity to acquire Chinese businesses from Singapore’s Broadway

US-based private equity firm Platinum Equity isto acquire the Foam Plastic Solutions (FPS) and Flow Control Devices (FCD) businesses of Broadway Industrial Group Limited.

FPS supplies protective packaging, insulation and component products to the consumer electronics, automotive, medical and other end-markets. FCD supplies high-performance parts such as valves, fittings, sensors, and related components used in diverse end-applications.

Platinum Equity is a Los Angeles-based global private equity firm focused on acquiring businesses that can benefit from the firm’s operational expertise. The proposed acquisition was led by Platinum Equity’s Singapore office.

Jacob Kotzubei, the partner in Platinum Equity’s Los Angeles headquarters who oversees the Singapore-based team, said this type of transaction is a perfect fit for Platinum Equity’s approach.

“We have 20 years of experience providing divestiture solutions to corporate sellers and establishing thriving standalone businesses,” said Kotzubei. “We also have substantial financial and operational resources in Asia and a strong and growing track record of creating value in the region.

Platinum Equity has long had a presence in Asia through the operations of its portfolio companies, with total employment today now exceeding 20,000 people across multiple portfolio companies in a range of different industries.

The proposed acquisition of FPS and FCD marks the firm’s second acquisition of a business headquartered in Asia. In April 2015 Platinum Equity acquired Chinese manufacturer Ying Shing Enterprises Limited, a vertically integrated manufacturing solutions provider for customised precision-engineered plastic injection moulded and metal stamping components.

“This transaction with Platinum Equity marks an important milestone in the history of Broadway Industrial Group Ltd. Not only does it unlock shareholder value, it also connects the divested businesses to a reputable and financially strong private equity firm with operational expertise and extensive experience in Asia,” said Lew Syn Pau, Chairman of Broadway Industrial Group. “I am confident that Platinum Equity will provide the much-needed resources to help the businesses grow and continue to get stronger.”

Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with more than US$6 billion of assets under management and a portfolio of more than 25 operating companies that serve customers around the world.

Set up in 1969 as a maker of EPS packaging, Broadway manufactures precision-machined components for the electronics, automotive, oil & gas and other industries. Through its wholly owned subsidiary Compart Asia, the group is one of the top three suppliers of actuator arms and related assembled parts for the global hard disk drive (HDD) industry. With a track record over 40 years, the Broadway Group is also a producer of eco-friendly foam products, servicing a strong pool of multinational customers with operations in China.