Hong Leong Asia has paid $90.7 million in cash for privately-held Yong Tai Loong, a supplier of household shelters and other building materials.
Yong Tai Loong, according to Hong Leong Asia, has six decades of history and is one of the five household shelter suppliers approved by HDB.
The acquisition is aligned with HLA’s strategy to enhance its capabilities in delivering urban solutions within the built industry.
HLA says that with strong demand for construction outputs with HDB and private residential projects, Yong Tai Loong has grown its orderbook that will support profitable growth trajectory over the next few years.
On a pro forma basis, HLA's earnings per share assuming the acquisition was completed on Jan 1 2025, would increase from 15.08 cents to 15.79 cents.
Besides household shelters, Yong Tai Loong supplies other fittings used in residential developments ranging from laser cut metal gates, wrought iron gates, uPVC doors, retractable clothes drying racks, letterboxes and ladders.
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The addition of Yong Tai Loong to the building materials portfolio will broaden HLA’s capabilities by expanding its product offerings and positioning the group for further growth in Singapore’s built environment sector.
"We will continue to evaluate portfolio enhancement opportunities that will drive long-term value for our shareholders," says Stephen Ho, HLA's executive director and CEO.
Hong Leong Asia shares closed at $3.17, up 1.28% for the day and up 27.82% year to date.
