Novo Tellus-backed precision engineering firm Sunningdale Tech has agreed to acquire Sanwa Group, a 48-year-old Singapore company, in a move that will make it one of the largest precision plastics engineering companies in Asia, according to an announcement.
The all-cash acquisition is set to lift the annual revenue of the combined entity to S$850 million as of December 2024, which is substantially larger than other private equity-backed Singaporean portfolios in similar verticals like Dymon Asia Private Equity-backed Meiban and ShawKwei & Partners’s Beyonics. Following the transaction, the group will have a global footprint spanning 23 locations in nine countries.
Founded in 1977, Sanwa Group manufactures precision plastic components for automotive companies. It has clients in the industrial, energy, consumer, and biomedical industries. Sanwa Group operates across seven manufacturing sites in China, Indonesia, India, and Singapore, per a statement.
The deal will help Sunningdale diversify its customer base, enhance its engineering capabilities, and expand into new segments and markets with minimal customer or product overlap between the two companies.
“The acquisition is also in line with the group’s strategy to accelerate the transformation of its automotive business to focus more on the manufacturing of functional parts and critical EV components,” the statement read.
Its CEO and founder Ricky Souw will stay on as an advisor to Sunningdale Tech following the completion of the merger.
“This strategic and highly synergistic acquisition will put us in a formidable position to take advantage of growth opportunities worldwide,” said Khoo Boo Hor, CEO and executive director of Sunningdale Tech. “It will better position us to serve customers through our combined technical know-how and global reach.”
Sunningdale, which was taken private by a Novo Tellus-backed consortium in 2021, produces precision engineered plastic components for multinational customers in the automotive, consumer/IT, and healthcare industries. Its solutions span product and mould design, mould fabrication, injection moulding, complementary finishing, and precision assembly of complete products.
The group has recently been focusing more on the healthcare segment, becoming more competitive with Meiban, which makes custom molds that help manufacturers produce plastic parts for medical devices. Meiban, whose sponsor is looking for exit options, last month bought a 20% stake in an Australian medical product designer and manufacturer in a bid to expand its contract development and manufacturing organisation services.
