Trifast completes £15m Malaysian acquisition
ENGINEERING group Trifast has completed its £15m acquisition of a Malaysian industrial fastening group.
The Birmingham-based company said the takeover of Power Steel and Electro-Plating Works would substantially “broaden the group’s reach”.
The acquisition has been funded by a mix of bank resource and an equity placing which amounted to 21,621,622 shares placed at 37p per share, raising approximately £8m, before expenses.
Advisers on the deal included: Arden Partners (financial adviser, sole broker, underwriter and sponsor); Charles Russell (legal); CMS Cameron McKenna (solicitors to Arden Partners); KPMG (auditors); Computershare (registrar); and Citigate Dewe Rogerson (PR).
The new subsidiary manufactures high value and technically sophisticated cold forged components used within the automotive, motorcycle and compressor industries in the Asian region.
The company was incorporated in 1972 by Foo Poh Wah, chief executive and principal shareholder. The business started standard manufacturing in 1973 producing parts for local consumption. In 1982, it diversified into technically advanced fasteners and expanded to meet the component needs of the emerging automotive industry through the likes of Perodua and Proton.
Today, PSEP is considered to be one of the most advanced fastener manufacturers in the Asia region. Its customer base is also complementary to Trifast’s own.
Jim Barker, Trifast’s chief executive, said: “PSEP’s ability to produce larger component size capacity coupled with TR Asia’s existing small diameter capabilities substantially broadens the group’s reach whilst it enhances one of our strategic objectives of becoming a single source supplier to major user assemblers.
“We have already been benefiting from our long established business relationship and now, together, we have strengthened our service offering and from here, we can capitalise on the opportunities for the combined business within the Asian territories as well as internationally.”
