Kohlberg Kravis to Buy Singapore’s Unisteel for S$785 Million

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New York-based Kohlberg Kravis Roberts & Co. already acquired last year MMI, a maker of disk drives components in Singapore, for S$1 billion.

Based in Singapore, Unisteel Technology Limited manufactures mainly engineered components such as disk clamps, balance rings and tray clips for customers in the HDD industry.

The company generates S$47.5 million in net profit attributable to shareholders in FY07, as revenue climbs 18.7% from S$231.6 million to S$274.8 million.

In terms of business segments, revenue from the Group’s Fastening/ Engineered Components segment grew by 9.6% from S$186.1 million to S$204.0 million due to sustained demand from hard-disk drive related customers and contribution from J.C. Metal Industries, an HDD disc clamp vendor.

Through its wholly-owned subsidiary, J.C. Metal Pte Ltd,  also in Singapore, made two acquisitions.

In July 2007, the group acquired the assets and business of J.C. Metal Industries (S) Pte Ltd or JCMI for cash consideration of $36.7 million, a firm principally engaged in the provision of turnkey solutions for coldforged components (encompassing design, tooling, fabrication and assembly) and precision stamped parts such as disk clamps and balance weights for the hard-disk drive industry.

In October 2007, the group acquired the assets and business of TPK Precision Engineering Pte Ltd (TPK), focused on the machining of metal parts for the HDD sector. It counts J.C. Metal as one of its main customers.