Kumpulan Perangsang Selangor Berhad is looking to acquire 100% equity in MDS Advance Sdn Bhd by its wholly-owned subsidiary Perangsang Dinamik Sdn Bhd for RM85.0 million.
The group said the purchase consideration of RM85.0 million values MDS Advance within the industry benchmark in terms of Enterprise Value to Earnings Before Interest, Tax, Depreciation, and Amortisation ratio of 7.9x, which will be fully satisfied by internally generated funds.
MDS Advance is involved in a high-precision computer numerical control (“CNC”) metal machining business, which involves metal cutting and milling. Operating on the engineering support industry landscape, its metal machining business produces and supplies intermediate products to manufacturers and end-user producers within the machinery and equipment industry.
The company started operations in 2015 MDS Advance and headed by its founder, Gan Lian Ban, and supported by a management team with strong technical expertise and industry know-how in high-precision CNC metal machining. In addition to ISO 9001:2015 and ISO 14001:2015 certifications, MDS Advance is licensed to produce machined parts and components for general customers and the medical industry. Its product suite includes precision metal parts and components spanning the medical, semiconductors, and electronics industries. Since its inception, the company has had a successful
track record of customer acquisition and retention, with its key customers being market leaders and multinational corporations.
Commenting on the proposed acquisition, KPS Berhad’s Managing Director/Group Chief Executive Officer, Ahmad Fariz Hassan, said, “This bolt-on acquisition of MDS Advance will complement Perangsang Dinamik’s current portfolio consisting
of Toyoplas Manufacturing (Malaysia) Sdn Bhd and CPI (Penang) Sdn Bhd, strategically positioning it by adding to the existing range of expertise in plastic injection moulding and electronic manufacturing services (“EMS”) with knowhow in metal machining. With a widened array of capabilities adding to its existing competitive advantage and value proposition, Perangsang Dinamik could offer more holistic solutions to the engineering support industry, and ultimately, the machinery and equipment (“M&E”) industry, having even broader skillsets than some of the larger players in the industry.
