Hi-P International has entered a deal to acquire Singapore-based plastics manufacturer SEAMCO for US$31 million, the contract manufacturer said in a filing to SGX Tuesday.
“SEAMCO’s strong capabilities in processing ultra-precision thermoplastic and thermoset components for a specific product category are unmatched in the industry. The proposed acquisition will certainly strengthen our core competency in precision plastic engineering,” Yao Hsiao Tung, Hi-P’s executive chairman, said in the statement.
“It will also position Hi-P to ride on the major trends in the industry,” he added. “The proposed acquisition provides an immediate access to a blue chip customer that present us with enormous growth prospects in consumer electronics and automotive market segments.”
On a pro forma basis, assuming the deal was completed on 1 January 2018, Hi-P’s earnings per share for 2018 would have been 13.76 Singapore cents, compared with 12.54 Singapore cents reported, the company estimated.
Hi-P said it plans to finance the acquisition with internal resources.