FountainVest Partners is exploring a sale of Small Precision Tools, the Swiss micro-tools manufacturer it acquired in 2021, according to people familiar with the matter. The private equity firm is working with advisers on a potential transaction that could value the company at up to $1 billion. Chinese strategic investors and industrial-focused funds have shown interest.

SPT produces micro-miniature parts using ceramic injection molding technology for electronics, dentistry and watchmaking applications. The company operates from Switzerland with facilities in China, Japan, the Philippines, Singapore and the United States. These high-precision components serve industries requiring tight tolerances and specialized materials.

FountainVest led Chinese investors in acquiring majority control of SPT three years ago, though terms were undisclosed. The mulling of a sale reflects continued private equity activity in industrial sectors. Sources note deliberations are early-stage and may not materialize into a transaction.

A successful deal would provide an exit for FountainVest's industrial investment while potentially attracting strategic buyers seeking precision manufacturing capabilities. SPT's specialized technology positions it as a compelling target in the industrial tools market.