Platinum Equity has sold Compart to Shanghai Wanye Enterprises Co for about $398 million. Based in Singapore, Compart is a provider of of high-precision, machined metal components including valves, fittings, sensors, and related components for a range of industries.
LOS ANGELES, Dec. 22, 2020 /PRNewswire/ — Platinum Equity announced today that it sold Compart Systems Pte Ltd. (“Compart” or the “Company”) to Shanghai Wanye Enterprises Co., Ltd. (“Wanye”) in a transactions valued at approximately $398 million.
Compart, headquartered in Singapore with primary operations in China and Malaysia, is a supplier of high-precision, machined metal components including valves, fittings, sensors, and related components for a range of industries.
Platinum Equity is a Los Angeles-based global private equity firm focused on acquiring businesses that can benefit from the firm’s operational expertise. The Compart investment was led by Platinum Equity’s Singapore office.
“We have committed substantial financial and operational resources to our investment strategy in Asia and Compart’s success further extends our track record of creating value in the region,” said Jacob Kotzubei, the partner in Platinum Equity’s Los Angeles headquarters who oversees the firm’s Singapore-based team. “We have a lot of experience transacting in Asia, with a dedicated team on the ground supported by our global network.”
Mr. Kotzubei noted that just last week Platinum Equity announced it would acquire Ingram Micro Inc. from a Shanghai-listed unit of Chinese conglomerate HNA Group for $7.2 billion.
Platinum Equity acquired Compart as a carve out from Broadway Industrial Group Limited in 2016, and then drove a comprehensive transition and operational improvement program to establish the company as a thriving standalone business.
“We transformed Compart from a traditional manufacturing business into a technology-driven solutions provider that is now much more valuable to its multi-national customers in need of high-quality manufacturing partners in Asia,” said Soo Jin Goh, Managing Director at Platinum Equity and head of the firm’s Singapore-based investment team. “We deployed the full range of Platinum’s M&A and Operations tool kit and made good on our pledge to help the company grow, both organically and through add-on acquisitions.”
In 2018, Compart acquired and then commercialized a valuable portfolio of intellectual property that allowed the company to move up the technology value chain and strengthened its R&D capabilities in Singapore.
In 2019, Compart acquired Alpha Precision Turning & Engineering, which helped diversify the company’s revenue, added scale, and expanded its footprint into Malaysia.
“Platinum has been an outstanding partner that helped provide the strategic direction the company required and then gave us the resources we needed to successfully execute on our plans,” said Compart CEO Russ Norwood. “We’ve now found the perfect home for the business going forward and are excited to be a part of Wanye’s ambitious plans for growth.”
BDA Partners served as financial advisor to Platinum Equity on the sale of Compart and Clifford Chance served as Platinum Equity’s legal advisor on the transaction.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $23 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.
About Compart Systems
Compart Systems is a global supplier of precision engineered solutions for critical components and assemblies for over 30 years. Compart is a vertically integrated technology and IP organization manufacturing industry leading components, surface mount parts, weldments and assemblies including gas sticks and mass flow controllers.