SINGAPORE (Feb 5): Buying controlling stake in JEP enables UMS to tap aerospace manufacturinOver the last 12 months, many precision manufacturing companies have done well on the back of a global semiconductor rally. This includes UMS Holdings, which provides equipment manufacturing and engineering services to original equipment manufacturers (OEMs) of semiconductors and related products. Shares of the company more than doubled to close at $1.07, or 13.6 times its historical earnings, on Jan 30. UMS currently has a market capitalisation of $573.9 million.

But now that the semiconductor rally has run considerably, growth ahead may not be as fast paced as before. UMS chairman and CEO Andy Luong reckons that a diversification into aerospace manufacturing could continue to drive growth for the company. And he thinks that the best way to do so is through the acquisition of a controlling stake in JEP Holdings.

JEP provides precision machining and engineering services, mainly to the aerospace industry via its subsidiary JEP Precision Engineering (JEPS). The latter has built a track record since 1990 as a reliable subcontractor for aerospace components and is accredited with AS9100, Ohsas and Nadcap. JEPS is now part of the global supply chain for the world’s leading aircraft manufacturers; for instance, it makes casings for aircraft engines designed and built by Pratt & Whitney.

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