KUALA LUMPUR: Ekuiti Nasional Bhd (Ekuinas) is buying a controlling stake in Flexi Versa Group Sdn Bhd at enterprise value of RM330 million.
The acquisition marks Ekuinas’ foray into the electrical and electronics industry, venturing into precision manufacturing.
This is Ekuinas’ second investment in the manufacturing sector following the acquisition of a homegrown lighting design and consultancy firm Davex (Malaysia) Sdn Bhd in December 2017.
Ekuinas said Flexi Versa is a leading, Southeast Asian contract manufacturer that caters to leading global consumer electronics brands, specifically as a turnkey and components manufacturer focusing on the audio and consumer appliances segment.
With a 24-year history and presence across four Asran countries, Flexi Versa is in a strong position to build on its track record to strengthen its market leadership in its core acoustic consumer products and expand its portfolio in die-cutting of electromechanical components and injection moulding to other consumer appliance business segments.
“Ekuinas’ investment strategy is to identify strong and high-potential Malaysian companies with the desire to grow and expand regionally,” Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir said in a statement.
“Its solid fundamentals and market potential were key factors in our decision process. Its financial track record and operational capabilities, specifically in its ability to integrate different entities and formulate its strategy, underpin its strong position with revenue of RM300 million and will serve as a basis for growth locally and within the region,” he added.
Flexi Versa CEO Chng Boon Huei said Ekuinas would be instrumental in helping institutionalise its entities, expanding its portfolio of established clientele and positioning it as a well-established and versatile turnkey and components manufacturer.
Flexi Versa started in 1994 and currently operates seven factories in Malaysia and two abroad.
It is a Tier 1 and Tier 2 contract manufacturer to leading global consumer electronic brands such as Sony, Panasonic, Onkyo, Sony, Dyson and JVC Kenwood.