SINGAPORE (Apr 1): Teckwah Industrial Corporation announced that it is acquiring Profoto Digital Services (PDS) from two individuals – Johnny Pranata and Lock Hui Soon – for a consideration of $13.0 million.
PDS is in the business of providing digital graphic prints, event set-ups, window display and project management services. Its customers are mainly in the fashion and beauty industry, as well as in shopping malls.
The vendors also owns an 80% stake in Profoto Malaysia, a company incorporated in Malaysia providing similar services to PDS. The remaining 20% stake is held by an unrelated third party.
As part of the sale and purchase agreement, the vendors will be transferring their 80% ownership in Profoto Malaysia to PDS, making Profoto Malaysia a subsidiary of PDS.
The group believes that this acquisition presents an opportunity to extend its supply chain capability and add value to its customers.
In addition, it will enable the group and PDS to tap on the synergies and to expand the business overseas by leveraging on the group’s established network of contacts in the Asia Pacific region.
This acquisition will be funded by the group’s internal resources and/or bank borrowings.
As at 12.00pm, shares in Teckwah are trading 2.56% higher at 40 cents.
