March 26, 2023 2:36 pm

HONG KONG, March 17 (Reuters) – Chinese private equity firm DCP Capital aims to sell its Singaporean portfolio firm MFS Technologies, which tends to make versatile printed circuit boards, for at least $550 million, two people today with understanding of the matter told Reuters.

The firm, founded by former KKR &amp Co dealmakers David Liu and Julian Wolhardt, began promoting the sale on Friday and will send out confidential details memoranda subsequent month, a single of the sources stated.

The sale is targeting mainly monetary sponsors, but also strategic purchasers, according to the two sources and a separate individual with understanding of the transaction.

Initial bids are anticipated by late May perhaps, a single of the sources stated.

BDA Partners and Jefferies are advising DCP on the sale, the sources stated. All of the sources declined to be identified as the details was confidential.

DCP Capital and BDA Partners declined to comment. MFS and Jefferies did not straight away respond to a request for comment.

The Chinese firm purchased a controlling stake in MFS in 2018 from Navis Capital Partners and Novo Tellus Capital Partners for an undisclosed quantity.

Founded in 1989, Singapore-headquartered MFS manufactures circuit boards with applications focused on automotive, industrial, health-related and information storage finish-markets.

It manufactures in China and Malaysia, and has sales teams in Germany and Canada, its web page shows.

In 2022, the company’s earnings prior to interest, taxes, depreciation, and amortisation totalled $46 million, stated a single of the sources.

DCP was set up in 2017 by Liu, who was KKR’s head of Higher China and a co-head of its Asia private equity enterprise, and Wolhardt, a senior KKR executive in the area, following each worked with the U.S. buyout firm for 11 years.

DCP raised $two.five billion in its maiden fund in 2019, focusing on China investments.

Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore More reporting by Julie Zhu in Hong Kong Editing by Kenneth Maxwell

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