Global News Link 

Trifast plc has agreed conditional terms to acquire the entire issued capital of Power Steel and Electro-plating Works Sdn Bhd (PSEP), a privately owned Malaysian manufacturer and distributor of fasteners.

The acquisition together with a bank facility drawdown and the placing of 21.6 million shares, aimed at raising ￡8 million, are subject to shareholder approval at a General Meeting to be held 13th December 2011. Just short of 4.5 million shares have been conditionally placed with two current substantial shareholders.

Trifast chairman, Malcolm Diamond, commented on the acquisition: “PSEP represents an excellent strategic fit for Trifast as PSEP operates as a manufacturer of highly engineered parts to the automotive, motorcycle and compressor industries. This will enable Trifast to offer a full range of threaded fasteners manufactured within the enlarged Group’s facilities to these industry sectors which the directors consider to be strategic for its global aspirations.

“The PSEP’s operational management team will benefit from Trifast’s global sales and marketing resources and will present opportunities beyond its current customer base, whilst simultaneously allowing Trifast access to PSEP’s client base. The acquisition of PSEP will enable the Group to increase the size of its overall business with negligible overlap with Trifast’s existing business and is consistent with Trifast’s strategy to grow by acquisition whilst capitalising on investment and organic growth opportunities. There is also a significant opportunity to grow the combined businesses in Asia by investing in new facilities, plant and machinery.”