News

DCP today announced the completion of its investment in MFS Technology ("MFS", or the "Company"). DCP acquired a controlling stake in MFS in partnership with the Company's senior management team, who invested significantly alongside DCP. MFS designs, prototypes, and manufactures custom-designed flexible printed circuit boards and rigid printed circuit boards used in electronic devices and equipment for leading global companies.

MFS' circuit boards are sold into a range of final applications in the medical, data storage, automotive, industrial and other sectors. The Company's targeted end markets are experiencing excellent long-term secular growth related to the importance of MFS' products in the development of the "Internet of Things" automotive electrification, industrial automation, and digital health. Superbly positioned to benefit from these favorable trends, MFS generates robust growth with an exceptional 30%+ return on capital.

DCP identified this high value segment of the electronics supply chain as one where China would be a more important player in the years to come. The printed circuit board market in China has grown rapidly from only 26% of the global market to more than 50% over the last decade. The continued shift into China of the higher value products which MFS produces represents an attractive market opportunity with strong growth, robust margins, and stellar returns on capital driven by MFS' unique technology, know-how, and customer relationships.

Founded 30 years ago in Singapore with four manufacturing facilities located in both China and Malaysia, MFS distinguishes itself by strategically focusing on those specialty markets where customers demand stringent, time-consuming vendor certifications that can take as many as two to six years before commercial volume production. The Company also engages intensively with customers' R&D departments in product co-development and engineering, creating durable relationships with customers. As a result, the Company is often a sole source supplier of low and mid volume, high mix, high margin products with long product life cycles of five to seven years. MFS' top customers are multinational corporations in the U.S., Europe and Asia, who have been with MFS for an average of over 12 years. The Company generates robust new orders through existing customers' referrals, a testament to MFS' strong quality and dependability.

Mr. Tan Bian Ee, CEO of MFS, said: " We are excited to partner with DCP in MFS to expand and build upon our company's excellent technology capabilities and powerful business model globally. We appreciate DCP's deep engagement in operational initiatives to drive continuous improvements to how we operate for our global, blue chip customers. We look forward to working with DCP to drive our next phase of growth in China."

Mr. Julian Wolhardt, CEO of DCP, commented: "DCP is delighted in our partnership with MFS given their strong track record and world-class management team. We are strong believers in MFS' unique strategy of investing in the low and mid volume, high margin medical, data storage, automotive and industrials segments which are enjoying excellent secular growth and high return on capital. We look forward to fully leveraging our global network and local expertise to assist MFS in growing and strengthening its global leadership position."

About MFS Technology:

MFS Technology is a leading flexible printed circuit manufacturer with applications focused on automotive, industrial, medical and data storage end-markets. The Company specializes in high density, multilayer product applications and has garnered a loyal customer base spread across these verticals.

Established in 1989 and headquartered in Singapore, MFS operates four sites in China and Malaysia with 2,600 employees, of whom more than 400 are highly skilled engineers and technicians. The Company is led by a team of highly experienced senior executives, with an average of 35+ years of experience in their respective fields.