Grand Venture Technology Limited (杰纬特 科技有限公司, “GVT”, or the “Group”), a leading manufacturing solutions and services provider, has announced the proposed acquisition of the entire issued and paid-up capital of a Singapore based surface treatment specialist, ACP Metal Finishing Pte Ltd (“ACP”) (the “Proposed Acquisition”), for an aggregate consideration of S$17 million.
Ricky Lee, Executive Deputy Chairman of GVT, explained, “We are excited to bring ACP and its surface treatment capabilities into GVT. With ACP on board, we expect to be able to deepen our penetration into the aerospace and front-end semiconductor segment, while aligning our capabilities across our facilities and providing integrated solutions across customer segments and geographical markets.
This will help us achieve our long-term objective of becoming a leading global precision manufacturing player with sustainable growth.”
ACP is a leading provider of customized electroplating and surface treatment services, which involves cleaning and coating a surface of a component to prevent corrosion and mitigate wear and tear. In particular, it has the specialized capabilities to provide various electrochemical and chemical treatment services to coat a wide range of metals.
ACP’s customer base comprises precision engineering manufacturers in the aerospace, life sciences, optics, medical and semiconductor industries.
It is accredited by multiple aviation agencies including the National Aerospace and Defense Contractors Accreditation Program (NADCAP), the Federal Aviation Administration (FAA), the Civil Aviation Authority of Singapore (CAAS) and the European Union Aviation Safety Agency (EASA), and is one of only a few companies in Asia to hold the NADCAP and FAA certifications in one site.
The Proposed Acquisition aligns with GVT’s strategy to provide a one-stop full suite of services, alongside its current capabilities in ultra-precision machining, sheet metal fabrication, mechatronics assembly and testing. The Group will thus be able to reduce its reliance on external parties for surface treatment services.
The Group will also be able to accelerate business growth through access to ACP’s capabilities, customer base and markets in Southeast Asia. GVT will have the opportunity to expand its customer touchpoints in the aerospace segment from its current market in China to include Singapore and the region.
Additionally, the Group will be better positioned to build a differentiated advantage in the front-end semiconductor segment and develop its own in-house precision cleaning capabilities.
The Proposed Acquisition is subject to the approval of GVT’s shareholders at an extraordinary general meeting to be convened in due course.
