One Equity Partners has completed its acquisition of a minority stake of Sanken North America Inc. One Equity acquired 28.8 percent of Sanken new issued shares for $291 million. Sanken North America, of Worcester, Massachusetts, owns two semiconductor businesses, Allegro MicroSystems LLC and Polar Semiconductor LLC.
WORCESTER, Mass., Oct. 3, 2017 /PRNewswire/ — Sanken North America, Inc. (SKNA) announced today that One Equity Partners (OEP), a middle market private equity firm with deep technology expertise, has completed a minority investment in SKNA. SKNA sold 28.8% of newly issued shares to One Equity Partners for $291 million with the proceeds returning to Sanken Electric Co., Ltd. in the form of a special dividend.
SKNA, a wholly-owned subsidiary of Sanken, is the owner of two semiconductor businesses, Allegro MicroSystems, LLC (Allegro) and Polar Semiconductor, LLC (Polar). Allegro is a leader in developing high-performance power and sensor semiconductors that serve high-growth applications within the automotive, industrial and consumer markets, while Polar Semiconductor is a manufacturer of silicon wafers. Headquartered in Worcester, Mass., SKNA has a significant presence in Manchester, N.H., and operates manufacturing facilities in both the Philippines and Thailand.
“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.
“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. 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,” said Ravi Vig, President and Chief Executive Officer of SKNA and Allegro MicroSystems, LLC and a member of the SKNA Board of Directors.
“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 Sanken Electric Company, Ltd.
Sanken Electric Co., Ltd., a leading global supplier of analog power semiconductor products, designs and manufactures a wide range of power management integrated circuits, motor control integrated circuits, LED lighting integrated circuits as well as high quality automotive semiconductor devices and discrete components. For more information, please visit www.sanken-ele.co.jp/en/.
About Sanken North America, Inc., (SKNA)
SKNA, a wholly-owned subsidiary of Sanken Electric Co., Ltd., is the owner of Polar Semiconductor, LLC, (Polar) a wafer fabrication facility 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.
About One Equity Partners, (OEP)
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 140 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.