Transom Capital Completes Acquisition of SigmaTron International
In a significant move within the electronic manufacturing services industry, Transom Capital Group has finalized its acquisition of SigmaTron International, Inc. This successful transaction marks a new beginning for both companies, focusing on operational excellence and strategic growth.
Strategic Partnership for Growth
Transom, a private equity firm with a focus on operational efficiency, views this acquisition as a crucial step towards enhancing SigmaTron's capabilities and market presence. Gary Fairhead, Chairman and CEO of SigmaTron, expressed enthusiasm about this partnership, highlighting the resources and expertise that Transom will bring to the table. He stated, "With Transom’s support and operational expertise, we are well positioned to accelerate our long-term strategic objectives."
Conor Davenport, Managing Director at Transom, echoed this sentiment, emphasizing the potential for growth through improved sales and operational strategies. The goal is to leverage SigmaTron’s unique position within the market and navigate the current economic climate effectively, ensuring continued innovation in their offerings.
Transaction Overview
The acquisition involved a tender offer for all outstanding shares of SigmaTron’s common stock, priced at $3.02 per share in cash. Following the completion, SigmaTron’s stock ceased trading on public markets, transitioning to become a privately held entity. The offer was well-received, with over 71% of shareholders validly tendering their stock, making the acquisition a successful completion.
Leadership and Advisory Team
Transom Capital was advised by Kirkland & Ellis LLP, showcasing their commitment to navigating the complexities of such transactions. SigmaTron, on its end, was supported by Lincoln International as its exclusive financial advisor, with legal guidance from Greenberg Traurig, LLP and Howard & Howard Attorneys PLLC.
About SigmaTron International
SigmaTron operates as a prominent provider of electronic manufacturing services, specializing in delivering top-tier solutions including printed circuit board assemblies and fully assembled electronic products. With manufacturing facilities spread across various locations, SigmaTron is equipped to serve a diverse client base effectively. Their international footprint allows them to maintain strong connections with clients while staying adaptable to market changes.
Transom Capital's Commitment to Manufacturing
Established in 2008, Transom Capital has built a reputation for unlocking value in the middle market. The firm implements a hands-on and operationally intensive strategy to achieve transformative results in its portfolio companies. Their diverse capabilities allow them to engage meaningfully with businesses that require tailored solutions to drive performance.
Transom's focus extends beyond just capital; they also provide essential tools and insights, helping companies like SigmaTron realize their full potential and thrive in competitive environments.
Looking Ahead
As SigmaTron moves forward as part of Transom's portfolio, the focus will be on creating additional value through improved operational management and strategic initiatives. This acquisition aligns well with Transom's mission to support companies through transitions marked by growth opportunities and operational excellence.
Frequently Asked Questions
What does this acquisition mean for SigmaTron?
This acquisition positions SigmaTron to enhance its operational capabilities and explore new growth opportunities under Transom's guidance.
What is Transom Capital's strategy?
Transom Capital focuses on operationally intensive strategies that harness their expertise in unlocking value within the middle market.
Where does SigmaTron operate?
SigmaTron has facilities in various locations, including the United States, Mexico, China, and Vietnam to serve its global client base effectively.
How was the acquisition structured?
The acquisition was completed through a tender offer for SigmaTron’s common stock, with a purchase price set at $3.02 per share.
Who advised the acquisition process?
Kirkland & Ellis LLP advised Transom Capital during the acquisition, while SigmaTron was supported by advisors including Lincoln International and Greenberg Traurig, LLP.
