Amtek Engineering to buy US-based Interplex Industries for up to $266.4m

Amtek Engineering, a Singapore-listed manufacturer of precision engineered components, said on Tuesday it will buy Interplex Industries, which designs and makes miniature precision engineered solutions.

Amtek will pay up to US$210 million (S$266.4 million) for the United States-based firm, it said in a press release.

Of that amount, US$165 million will be paid at the closing of the transaction, which is expected to take place in the first half of next year subject to a series of approvals. Another US$11 million will be paid as a deferred payment.

Amtek has also agreed to pay up to US$34 million in earnout payments, which are based on the performance of Interplex following the acquisition. The payments will depend on Interplex's earnings before interest, tax, depreciation and amortisation for the 2014 to 2016 financial years.

The transaction will be funded through a combination of Amtek's existing liquid assets, cash and new borrowings.

Amtek's chairman and chief executive Daniel Yeong said the transaction is expected to add to Amtek's capabilities and geographical coverage.

"Interplex's miniature precision engineered solutions, blue chip customer base and global footprint are highly complementary to Amtek," he said.

Interplex's chief operating officer Steven Feinstein added: "Interplex has a long and successful track record in servicing blue chip customers with market leading miniature precision engineered solutions and application design services and with Amtek we believe we will build upon this track record."

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