Platinum Equity has signed a definitive agreement to acquire the Foam Plastic Solutions (FPS) and Flow Control Devices (FCD) businesses of Broadway Industrial Group.
FPS is a supplier of 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, says 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," says 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, 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. 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," says 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."
Soo Jin Goh, principal at Platinum Equity and co-head of the firm's Singapore-based team, says: "This acquisition creates a strong platform for growth and we are eager to work with the management team to pursue opportunities to expand the business both organically and through strategic add-on acquisitions.”
