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.