Court Square Capital Partners and Francisco Partners acquired the Sunnyvale, Calif.-based electronics parts maker in 2004 for $828.2 million. Equity contributions and funds were not disclosed.
What Went Wrong?
The company managed to acquire $1 billion in debt just as demand for consumer electronics products declined in the recession. The company’s management cited it’s the loss of talent from its spin-off from parent company Hynix as part of the company’s problem. MagnaChip filed for bankruptcy on June 12, 2009.
A fund led by South Korea’s KTB Securities Co. Ltd. has acquired MagnaChip and its affiliates.