KUALA LUMPUR (Jan 23): YBS International Bhd (KL:YBS) on Friday finalised an agreement for the acquisition of precision machining firm Allied Technologies' group of companies.
The acquisition is set to triple its workforce to 3,000 employees, YBS International said in a statement. The company will also have expanded facilities in Johor Bahru and Melaka, alongside new international operations in Vietnam and Bangkok, it noted.
“We recognise that it will take two to three years to fully integrate this investment, as we work to transform our current RM100 million foundation into RM400 million of sustainable, high-value capacity,” said YBS International managing director and chief executive officer Yong Chan Cheah.
The agreement follows a memorandum of understanding signed in September 2024 by the Penang-based YBS International to acquire Allied Technologies Holdings Pte Ltd’s units for a total indicative price of US$38 million (RM167.2 million) via cash and share issuance.
The targeted Allied Technologies units provide precision manufacturing services ranging from design and product development prototyping, tool and die fabrication, production and mechanical sub-assembly services catering to clients who are mainly in the computer and computer peripherals industries.
“The acquisition serves as the cornerstone for a massive regional expansion,” YBS International said in the joint statement with Invest Penang and Export-Import Bank of Malaysia Bhd, which provided US dollar-denominated Islamic financing for the acquisition.