Hong Leong Asia buys Yong Tai Loong for $90.7m

Acquisition expands Singapore building materials portfolio.

Hong Leong Asia has completed the acquisition of architectural building products supplier Yong Tai Loong for about $90.7m in cash, in a deal it said is earnings accretive on a pro forma basis.

The company said the purchase strengthens its building materials portfolio and expands its offering in Singapore, where Yong Tai Loong is one of five Housing and Development Board-approved suppliers of household shelters.

Yong Tai Loong, which has more than 60 years of operating history, supplies products including blast-resistant steel doors, ventilation sleeves, fire-rated steel doors, metal gates, door frames, letterboxes, and refuse chute hoppers used across residential developments in Singapore.

Hong Leong Asia said the acquisition aligns with its strategy to build its urban solutions capabilities in the built environment sector.

It added that Yong Tai Loong has built an order book supported by demand from HDB and private residential projects that should support profitable growth over the next few years.

The group said Yong Tai Loong has two main manufacturing facilities in Singapore with semi-automated processes and robotics machinery, and that it will retain the company’s key management team and workforce to ensure business continuity and smooth integration.