New Investment Supports Expansion for Allegro MicroSystems and Polar Semiconductor Businesses
NEW YORK – October 3, 2017 – One Equity Partners, a middle market private equity firm with deep technology expertise, today announced the completion of its $291 million investment in Sanken North America (“SKNA” or “the Company”). The private placement investment provides One Equity Partners with an ownership stake of 28.8% in SKNA, a subsidiary of Japan’s Sanken Electric Company, Ltd. Proceeds from the share sale will be returned to Sanken Electric Company in the form of a special dividend. Additional terms were not disclosed.
“The investment by OEP into SKNA offered a unique strategic opportunity. Sanken realized a portion of the value created in SKNA to support its restructuring and growth initiatives, while ensuring SKNA access to investments to support its continued growth and expansion opportunities,” said Yoshihiro Suzuki, Chairman of the Board, Sanken North America, Inc. and member of the Sanken Board of Directors.
SKNA, a Worcester, Mass.-based company and wholly-owned subsidiary of Sanken, is the owner of two semiconductor businesses: Allegro MicroSystems, LLC (Allegro) and Polar Semiconductor, LLC (Polar). Allegro manufactures high-performance power and sensor semiconductors that serve high-growth applications within the automotive, industrial and consumer markets, while Polar Semiconductor is a maker of silicon wafers. SKNA has offices in Manchester, N.H., and manufacturing facilities that are located in Bloomington, MN, the Philippines and Thailand.
“Over the past year, SKNA has focused on growth, improved competitiveness, operational enhancements, and long-range business expansion beyond magnetic sensor and power integrated circuits,” said Ravi Vig, President and Chief Executive Officer of SKNA and Allegro MicroSystems, LLC and a member of the SKNA Board of Directors. “By aligning with OEP and leveraging their demonstrated expertise within the semiconductor industry, we will accelerate these activities, further improving operating efficiencies, enhancing our growth strategies, and pursuing merger and acquisition opportunities.”
“We are delighted to partner with Sanken and with the SKNA management team. SKNA has a strong financial foundation and is well positioned to grow organically and through strategic acquisitions,” said Chip Schorr, Senior Managing Director, One Equity Partners and a member of the SKNA Board of Directors. “Given the leading position of Allegro across the globe and the vast financial resources now at the Company's disposal, we are very excited about Allegro's ability to become a consolidator in its markets.”
About One Equity Partners
OEP is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an extensive track record generating long-term value for its partners. Since 2001, the firm has completed more than 150 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.
About Sanken North America
SKNA, a wholly-owned subsidiary of Sanken Electric Co., Ltd., is the owner of Polar Semiconductor, LLC, (Polar) a wafer fabrication facility specializing in Bipolar CMOS DMOS (BCD) processes located in Bloomington, Minnesota (USA) and Allegro MicroSystems, LLC, (Allegro) a leader in developing high-performance power and sensing semiconductors. Allegro's innovative solutions serve high-growth applications within the automotive market, with additional focus on office automation, industrial and consumer/communications solutions. Allegro is headquartered in Worcester, Massachusetts (USA) with design, applications, and sales support centers located worldwide. For more information, please visit www.allegromicro.com.
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