SFS Group to Acquire Unisteel

The SFS Group announced that, through its wholly-owned subsidiary, SFS intec, it has entered into a definitive agreement to acquire Unisteel Technology International Limited from a holding company owned since 2008 by the management and employees of Unisteel and an affiliate of Kohlberg Kravis Roberts & Co. L.P.

Established in 1960 and based in Switzerland, SFS intec is in the development, manufacture and supply of precision formed components, engineered fasteners and mechanical fastening systems to customers across industries including the automotive, construction, aircraft, electronics, and transportation.

Unisteel is a solutions provider and manufacturer of precision components, with multi-disciplinary competencies in precision fasteners, stamped components, machining parts, engineered plastics, optical parts, and surface treatment. With its headquarters based in Singapore and manufacturing facilities located in China and Malaysia, it serves a industries including data storage, mobile applications, and consumer electronics on a global basis.

The newly combined businesses of the SFS Group and Unisteel will employ more than 7,000 people, operate 25 manufacturing facilities across Europe, Asia and North America, and possess an enhanced range of production capabilities. Upon completion of the transaction, Unisteel’s current management team will join SFS and retain responsibility for their global electronics business.

Commenting on the transaction, Heinrich Spoerry, chairman and CEO of the SFS Group, said: "Led by a highly experienced management team, Unisteel is an industry leader in the hard disk drive and mobile sectors, with longstanding and high quality relationships with leading blue-chip customers. We are extremely excited about this partnership with Unisteel, and we look forward to supporting the continued growth of the Unisteel business as a member of the SFS family."

Helmut Binder, CEO of SFS intec, added: "Unisteel is an excellent strategic fit for SFS intec. The business will strengthen our positioning as a supplier of highly engineered fastening solutions, as well as enable us to become a global player in the fast growing electronics market. The addition of Unisteel’s comprehensive and world-class Asian operations will transform SFS intec into a business with a truly global manufacturing platform. We see meaningful opportunities to generate substantial synergies particularly in the areas of cross-selling, R&D, technology and manufacturing, and will work closely with the Unisteel team to achieve these goals."

Bernard Toh, chairman and CEO of Unisteel, commented: "The acquisition of Unisteel by SFS intec is a significant step forward for our business. The Unisteel management team is very excited about our integration into the SFS Group, which will enable us to extend our customer reach as well as expand our product portfolio. Over the past four years, we have benefited from a meaningful partnership with KKR – KKR has brought the right skills and experience to the business, enabling Unisteel to rapidly grow and develop into a multinational corporation."

"At the time of the investment, KKR saw the opportunity to partner with Unisteel’s management team to help strengthen their foundational capabilities in order to make the business more responsive and more diversified, and therefore better positioned for the future," said Ming Lu, member of KKR and Head of Southeast Asia. "With this transaction, Unisteel now has an excellent platform for further growth as a part of the SFS Group. We wish Unisteel and the combined enterprise continued success."

The transaction, which is subject to customary closing conditions, is expected to be completed in the third quarter of 2012.

Rippledot Capital Advisers acted as lead financial adviser to the Seller, and Credit Suisse acted as financial adviser to the Seller. Simpson Thacher & Bartlett and Allen & Gledhill LLP acted as legal counsels to the Seller. UBS acted as financial adviser to the SFS Group, and WongPartnership LLP acted as the legal counsel to the SFS Group.