Advisor to Medtech Precision Engineering Group

Our team advised the shareholders of a leading high-mix, low-volume precision engineering company that manufactures high-precision mechanical products for a wide range of industries, on its acquisition by a Swiss based company specialised in micro-mechanics precision manufacturing serving different industries, that is organised into three distinct divisions, namely: Watchmaking-Jewellery, Medtech, and Precision High-Tech.

Since 1988, the seller’s company has been recognised in the industry for supplying high-precision mechanical products and services. It produces intricate parts that are sought after by a wide range of industries, including life sciences, analytical, and medical equipment, across the Asian market. For the past 34 years, the company has enjoyed a solid reputation amongst its major, predominantly international clients, particularly in its main sector of activity, medical equipment. The company is headquartered in Singapore and employs more than 600 staff across Singapore, Indonesia, Malaysia, and China.

Founded in 2006, the buyer brings together unique and complementary skills in the high-precision technology markets. Be it with high-tech components or with specialised services, the buyer is present in the watchmaking, Medtech, automotive, aeronautical, and electronics industries. The buyer’s companies are located mainly in Switzerland, France, and the United States with 20+ production sites and 1,300+ staff globally. Some of the buyer’s key specialisations include the following:

• Unique, minute components for the watch industry as well as high-precision and intricate products on super alloys for the aeronautical, automotive, and medical markets.

• Exceptional knowledge of industrial automation and high-precision through capitalising on the collective strength and the expertise of the companies.

• R&D department to remain at the forefront of technological innovation in its areas of expertise, which will benefit from merging the skills of the companies.

With the arrival of one of the largest global private equity as the buyer’s new investor, the buyer has announced its diversification strategy to develop its activity in the Medtech sector and to create a greater balance between the group’s business areas. By acquiring the seller’s company, it has achieved a double objective: developing its Medtech division and opening the Asian market. Both the buyer and the seller believe this synergistic partnership will provide a geographical advantage, expand business networks, and offer new products and services to customers.

Our team served as the exclusive advisor to the seller and assisted in initiating, structuring, and negotiating the transaction, achieving above expectation valuation for the company. This deal exemplifies our track record and deep understanding of the sector and the buyer universe.

Note: This transaction was executed by the Mergerstone leadership team before the incorporation of the company.