July 26 - Chinese electronics parts manufacturer Victory Giant Technology Huizhou Co Ltd(SZ.300476) said on Wednesday it had agreed to buy Singapore’s printed circuit board maker MFS Technology for up to $460 million.

Victory Giant will pay in cash to acquire Pole Star Limited to indirectly own MFS Technology (S) Pte Ltd and all its subsidiaries, with equity value worth of about $365 million and debts worth up to $95 million, according to a filing by Victory Giant in the Shenzhen stock exchange.

Acquiring the target, which makes flexible printed circuits, will diversify products and improve competitiveness for Victory Giant, which is strong in making rigid printed circuit boards, the filing said.

The announcement comes four months after Reuters reported that Chinese private equity firm DCP Capital, founded by former KKR & Co dealmakers David Liu and Julian Wolhardt, was seeking to sell MFS for $550 million, with BDA Partners and Jefferies advising on the sale.

DCP bought a controlling stake in MFS in 2018 from Navis Capital Partners and Novo Tellus Capital Partners for an undisclosed amount.

Victory Giant said in the filing funds for the deal will come from channels including its own capital and bank loans, and the deal is pending registration procedures with local commerce authorities and China’s state planner, as well as approval from State Administration for Market Regulation.

About Victory Giant

Victory Giant Technology specializes in the research and development, production, and sales of high-precision printed circuit boards. Its products are widely applied in the fields of computers, aerospace, automotive electronics, communications, consumer electronics, industrial control, and medical equipment, etc. It has established long-term and stable cooperation with more than 160 top companies in the world. Victory Giant Technology is one of the top 100 printed circuit board manufacturers in the world, one of the industry standard-setting units, and it ranks at the forefront of the "Ranking of China Printed Circuit Enterprises".

About MFS

Founded in 1989, Singapore-headquartered MFS manufactures circuit boards with applications focused on automotive, industrial, medical and data storage end-markets.It manufactures in China and Malaysia, and has sales teams in Germany and Canada.