Transom Capital Completes Acquisition of SigmaTron International
Transom Capital Group, a middle-market private equity firm focused on operational enhancement, has successfully acquired SigmaTron International, Inc. This acquisition marks a significant milestone as SigmaTron, a global provider of electronic manufacturing services (EMS), transitions away from public trading. Following the completion of this acquisition, SigmaTron's common stock has ceased to be publicly listed.
Leadership Perspectives
Gary Fairhead, the Chairman and CEO of SigmaTron, expressed enthusiasm about the potential that this new partnership brings. He stated, "With Transom's operational expertise, we are well positioned to push forward on our strategic goals, enhance our customer relationships, and continue to innovate across various markets. This acquisition opens up numerous opportunities for us."
Conor Davenport, the Managing Director at Transom, also voiced his excitement, noting, "We are thrilled to integrate SigmaTron into the Transom portfolio. We see vast potential for enhancing SigmaTron's operations and profitability, while expanding growth through strategic mergers and acquisitions. With seven manufacturing facilities globally, including five located in North America, SigmaTron is uniquely situated to thrive in today’s market landscape. This acquisition reflects Transom's commitment to supporting manufacturing businesses, and we look forward to accelerating SigmaTron's operational excellence and seizing new opportunities within the industry."
Acquisition Details
Transom's tender offer to acquire all issued and outstanding shares of SigmaTron's common stock at a purchase price of $3.02 per share was executed successfully. The offer expired as scheduled and received a strong response, with 4,401,189 shares, representing 71.9% of the outstanding shares, being validly tendered and accepted for payment. This substantial support indicates strong shareholder confidence in the transaction.
Advisors in the Transaction
In this acquisition process, Kirkland & Ellis LLP provided legal advice to Transom, while Lincoln International acted as the exclusive financial advisor for SigmaTron. Additionally, Greenberg Traurig, LLP and Howard & Howard Attorneys PLLC advised SigmaTron on legal matters throughout the transaction. The collaboration among these firms illustrates the complex nature of this acquisition and the professional support required to facilitate it.
About SigmaTron International
SigmaTron serves as an independent electronic manufacturing services (EMS) provider. Their capabilities include manufacturing printed circuit board assemblies, electro-mechanical subassemblies, and fully assembled electronic products. SigmaTron’s production facilities span multiple locations, which include factories in Illinois, Mexico, California, China, and Vietnam. The firm also operates an International Procurement Office and Compliance center in Taipei, Taiwan, enhancing its ability to serve global clients effectively.
About Transom Capital Group
Founded in 2008 and based in Los Angeles, Transom Capital has a robust track record in identifying valuable investments and executing complex transactions in the middle market. Their strategy focuses on operational initiatives that drive transformative outcomes for the companies they invest in. By providing not just capital but also operational tools and insights, Transom aims to unlock the full potential of its portfolio firms. Their pattern recognition and disciplined execution in various sectors solidify their reputation as leaders in private equity investment.
Contact Information
For further information, reach out to Transom Capital through FGS Global at transomcapital@fgsglobal.com.
Frequently Asked Questions
What is the significance of Transom Capital's acquisition of SigmaTron?
This acquisition signifies Transom's commitment to supporting and growing SigmaTron, which is now positioned to enhance its operational practices and expand its market reach.
What kind of services does SigmaTron provide?
SigmaTron specializes in electronic manufacturing services, focusing on printed circuit board assemblies and complete electronic products.
How will this acquisition impact SigmaTron's operations?
With Transom's expertise, SigmaTron is expected to accelerate its growth strategy, enhance profitability, and improve operational efficiencies.
Who were the advisors involved in this transaction?
Kirkland & Ellis LLP acted as the legal advisor to Transom, while Lincoln International served as the financial advisor for SigmaTron, with additional legal advice provided by Greenberg Traurig and Howard & Howard Attorneys.
How does Transom Capital approach its investments?
Transom Capital employs a strategy focused on operational excellence and value creation, facilitating transformative growth in the companies it supports.
