TAIPEI — Singapore Technologies Engineering (ST Engineering) has procured a 90 percent equity interest in Brazil’s Technicae Projetos e Servicos Automotivos (Technicae).
ST Kinetics paid $465,000 with an additional $1.77 million capital call in proportion to its shares in the company. The July 22 buy was made via a subsidiary of ST Kinetics, Singapore-based Mobility Systems.
ST Engineering is divided into four sectors: ST Aerospace, ST Electronics, ST Kinetics and ST Marine. ST Kinetics specializes in land warfare vehicles and systems. Technicae is a provider of automotive maintenance, repair and overhaul services to military customers.
An ST Kinetics press release stated the deal was based on a “willing-buyer, willing-seller basis, after taking into account Technicae’s current projects and growth prospects.
“The acquisition is part of ST Kinetics’ strategic plan to establish a presence in Brazil to further its defense business in Brazil, and thereafter grow ST Kinetics’ presence in the rest of South America.”
ST Engineering has been investing in outside companies that specialize in components and services for land warfare systems. In March 2012, Mobility Systems increased its shares in Ireland-based Timoney Holdings from 25 to 27.42 percent. Timoney designs and supplies heavy-duty independent suspension and drive systems for military and commercial vehicles.