ITOCHU Corporation said on 9 April that it had agreed, together with SANKYU, to acquire all shares of SWTS Asia, a Singapore-headquartered plant equipment maintenance company, from its management and employees.
Why ITOCHU Corporation and SANKYU INC. is buying SWTS Asia Pte. Ltd.
ITOCHU said maintenance demand is sustainable and resilient to economic swings, and that Southeast Asia's market should keep growing with new plant construction and the refurbishment of ageing facilities. With skilled technicians increasingly scarce worldwide, it said SWTS's capabilities would contribute to the ITOCHU group, combining ITOCHU's management expertise and network with SANKYU's technical, labour-mobilisation and safety skills.
Deal terms and financing
ITOCHU and SANKYU are buying the whole company jointly; the price and the split of ownership between them were not disclosed.
Market context
SWTS has more than 50 years of history and about 700 technical staff, and ITOCHU described it as one of the largest businesses of its kind in Southeast Asia. Beyond refineries, petrochemical plants and power stations, it has moved into data centres and semiconductor-related facilities.
