Platinum Equity Sells Compart Systems To Shanghai Wanye Enterprises for

Platinum Equity announced today that it sold Compart Systems to Shanghai Wanye Enterprises in a transaction valued at approximately $398 million.

Compart, headquartered in Singapore with primary operations in China and Malaysia, is a supplier of high-precision, machined metal components including valves, fittings, sensors, and related components for a range of industries. 

Platinum Equity is a Los Angeles-based global private equity firm focused on acquiring businesses that can benefit from the firm’s operational expertise. The Compart investment was led by Platinum Equity’s Singapore office.

“We have committed substantial financial and operational resources to our investment strategy in Asia and Compart’s success further extends our track record of creating value in the region,” said Jacob Kotzubei, the partner in Platinum Equity’s Los Angeles headquarters who oversees the firm’s Singapore-based team. “We have a lot of experience transacting in Asia, with a dedicated team on the ground supported by our global network.”

Mr. Kotzubei noted that just last week Platinum Equity announced it would acquire Ingram Micro Inc. from a Shanghai-listed unit of Chinese conglomerate HNA Group for $7.2 billion.

Platinum Equity acquired Compart as a carve out from Broadway Industrial Group Limited in 2016, and then drove a comprehensive transition and operational improvement program to establish the company as a thriving standalone business.

“We transformed Compart from a traditional manufacturing business into a technology-driven solutions provider that is now much more valuable to its multi-national customers in need of high-quality manufacturing partners in Asia,” said Soo Jin Goh, Managing Director at Platinum Equity and head of the firm’s Singapore-based investment team. “We deployed the full range of Platinum’s M&A and Operations tool kit and made good on our pledge to help the company grow, both organically and through add-on acquisitions.”

In 2018, Compart acquired and then commercialized a valuable portfolio of intellectual property that allowed the company to move up the technology value chain and strengthened its R&D capabilities in Singapore.

In 2019, Compart acquired Alpha Precision Turning & Engineering, which helped diversify the company’s revenue, added scale, and expanded its footprint into Malaysia.

“Platinum has been an outstanding partner that helped provide the strategic direction the company required and then gave us the resources we needed to successfully execute on our plans,” said Compart CEO Russ Norwood. “We’ve now found the perfect home for the business going forward and are excited to be a part of Wanye’s ambitious plans for growth.”

BDA Partners served as financial advisor to Platinum Equity on the sale of Compart and Clifford Chance served as Platinum Equity’s legal advisor on the transaction.

Source: PR Newswire