Grand Venture Technology to acquire ACP Metal Finishing for $17m
The acquisition is still subject to the approval of GVT's shareholders.
Mainboard-listed Grand Venture Technology Limited (GVT) said it plans to acquire the entire issued and paid-p capital of ACP Metal Finishing Pte Ltd for $17m.
GVT will pay 90% of the consideration upon completion of the proposed acquisition and pay the remaining 10% to an escrow account and distribute to ACP 12 months after completion.
GVT will fund the consideration via a combination of internal resources and bank borrowings.
The acquisition will enhance GVT’s surface treatment capabilities, which, in turn, will deepen its penetration in the aerospace and front-end semiconductor industry.
ACP specialises in electrochemical and chemical treatment services to coat a wide range of metals.
GVT’s customers in the aerospace, front-end semiconductor, life sciences, and medical industries require surface treatment as a critical last-stage process.
The acquisition will provide GVT with the capability to provide such a service and will also reduce its reliance on external parties for surface treatment services.
GVT will also be able to accelerate business growth through access to ACP’s capabilities, customer base, and markets in Southeast Asia.