Duty Free to acquire automotive parts manufacturer for $53m

This forms part of Duty Free's business diversification and expansion.

Duty Free International is acquiring United Industries Holdings, a producer and supplier of automotive components to original equipment manufacturers in Malaysia, for a consideration of $53m (RM175m).

In its bourse filing on 21 July, Duty Free said it entered into a purchase agreement with Atlan Holdings for 37.7 million ordinary shares representing 100% of the issued and paid-up shares capital of United Industries and its subsidiaries. 

According to Duty Free, this is part of their move to diversify and expand their core business into the manufacturing and supply of automotive components.

United Industries’ primary products and services include the manufacture and supply of plastic and metal fuel tanks, metal stamping parts, screw jacks, tubings, fuel filter pipes, instrument panels, and other automotive production and assembly parts.  

The purchase will be paid in two parts: a 10% refundable sum of $5.3m (RM17.5m), and a balance of $47.7m (RM157.5m) to be paid on the date of completion of the sale and purchase of the shares.