Amtek says acquisition strategy to double sales in 5-7 years

Article by Eugene Conan, on March 13, 2014

Amtek Engineering Ltd. is intending to double sales to $2 billion in five to seven years via acquisitions. Amtek recently disclosed that it is acquiring precision-tool maker Interplex Industries Inc. for $210 million. The Singapore-based company is expecting auto products to fuel its growth during the period, according to Daniel Yeong, adding that carmakers will account for 40 percent of revenue in the next two to three years.

Amtek is bidding for more acquisitions to beef up its customer base, which already Tesla Motors Inc., Apple Inc., Dell Inc. and Royal Philips Electronics NV. The Interplex acquisition will help Amtek to top $1 billion in sales as well as offer scale to grab more contracts with site in new markets including the US, Mexico and India.

“After you cross the psychological barrier of $1 billion, the next $1 billion is going to be easier,” Yeong told Bloomberg in an interview. “In manufacturing, nobody’s going to put all their eggs in one small basket. They’d rather put all their eggs in one big basket.”

While Amtek, produces larger components, Interplex specializes in manufacturing miniature parts for the automotive, industrial and electrical industries.  Interplex’s customers include Apple, Continental AG and Denso Corp.

The Interplex acquisition is “good for them because it extends their service offerings,” said Loke Chunying, an analyst at UOB Kay Hian Pte said. He said the acquisition gives Amtek an immediate entry into Mexico and India, which considered as among the largest markets in the world now.” Amtek remarked that its future growth will also be boosted by increased sales from its key businesses.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016