Singapore-based private equity firm PrimeMovers Equity has partnered with London-headquartered investor Lingotto Investment Management to acquire a majority stake in Malaysian company EngTek Group.
EngTek Group is a die-casting and precision machining components manufacturer based in Penang, Malaysia. The transaction values the company at about S$150 million (about $112 million), according to the announcement.
PrimeMovers Equity, together with Lingotto as co-investor, will purchase a majority stake in EngTek.
Enzo II Holdings Pte Ltd, a special purpose vehicle established and managed by PrimeMovers Equity, will purchase a 27% equity interest in EngTek owned by Positive Carry Sdn Bhd.
Positive Carry will receive RM120 million ($26.5 million) in cash, payable upon completion of the deal.
The remainder of the majority stake will be acquired from EngTek CEO and chairman Teh Yong Khoon for an undisclosed amount.
After the acquisition, Teh will continue his roles at EngTek.
EngTek’s existing senior management team will retain a meaningful minority stake in the company after the transaction, which is expected to close in the second quarter of 2023.
PrimeMovers Equity and Lingotto see this investment as an opportunity to support EngTek’s growth by providing capital and strategic and operational resources.
In the announcement, the two firms said they aim to help the company expand both organically and through bolt-on acquisitions. The partnership is expected to leverage Southeast Asia’s growing importance in the global supply chain.
“This investment in EngTek is a prime example of our focus on making proprietary and strategic partnership investments in the industrial manufacturing segment, where we provide capital as well as strategic and operational resources to support the growth of the company,” said PrimeMovers Equity co-founder and CEO Soo Jin Goh.
PrimeMovers Equity is a spin-off from Platinum Equity Asia, led by Soo and Randy Teo. The firm actively works with management teams in the mid-market segment in Southeast Asia through its “growth and transformation through operations” framework.
While the firm is sector agnostic in its investment approach, it tends to operate in industries such as industrial & manufacturing, knowledge-based services, healthcare & consumer.