Private equity firm ShawKwei & Partners is considering a sale of precision manufacturer Beyonics Technology Ltd., people with knowledge of the matter said.
The buyout firm is working with investment bank Morgan Stanley to seek a buyer for the business, according to the people. ShawKwei is seeking to raise as much as US$300 million ($402.9 million) to US$400 million, said the people, asking not to be identified as the information is private.
Beyonics is a manufacturer of high-precision plastic and metal components for the automotive, medical and tech industries. It also provides contract manufacturing services, and has facilities in Singapore, Malaysia, China and Thailand, according to its website.
Deliberations are at an early stage, and the firm could decide not to proceed with the potential divestment, the people said. Representatives for Morgan Stanley and ShawKwei & Partners declined to comment.
Beyonics, previously a Singapore-listed company, was acquired by ShawKwei & Partners in 2012 for about $127 million.
The firm pivoted away from making hard disk drive components in an overhaul focusing on higher margin businesses. Today it develops advanced electronic and mechanical devices in sectors such as health care, security devices and automobile active safety, which contributes the biggest share of its revenue, one of the people said.
Beyonics’ health care business has seen the coronavirus pandemic driving demand for products including devices used in contact tracing, Covid-19 testing kits and heat-monitoring cameras, the person said.
ShawKwei is seeking a deal valuing the firm at more than 10 times its earnings before interest, taxes, depreciation and amortization, they said.
